Once the target firm is chosen the bidding firm’s next step is calculating the target firm’s worth. This is done through the process called valuation. The motive for acquisition will guide the bidder on the method used to evaluate the target firm. Some common reasons for acquisitions are that the target firm is undervalued‚ the bidding firm is looking to diversify‚ create economies of scales‚ poorly managed firms‚ or managerial self-interest. If the bidding firm is acquiring the firm due to it being
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Group Assignment on“Kohler (A) M&A Valuation”Submitted toINSTRUCTOR: ___________________In partial fulfillment for requirements of the courseMergers and Acquisitions (2012-2013)ByGroup K On19 November 2012 | Contents EXECUTIVE SUMMARY 3 Why does Herbert Kohler wants to do the recap 4 Calculation of Enterprise value 4 Using Discounted cash flow method 4 Dividend Growth Model 7 Comparable Companies Analysis 8 Valuation Summary 9 Justifying the share price of $ 55‚400 10 Defending $270
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support your recommendation. As you prepare this report‚ you may find that you would like to have more field information than what the case offers you. However‚ the case contains critical information that gives you a reasonable basis to compute its valuation. In addition use the following information for 1995.1 Redhook Pete’s BBC Sales ($ millions) 25.1 58.7 150.8 EPS 0.78 0.22 0.47 Book Value/ Share 7.92 4.24 3.02 Price 27.35 24.80 ? Also‚ use the following information
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iii. completeness d. Discussing the adequacy of the allowance for doubtful accounts with the credit manager. d. Inquiry iv. Valuation and allocation e. Comparing the current-year gross profit percentage with the gross profit percentage for the last four years. e. Analytical procedures v. Valuation and allocation f. Examining a new plastic extrusion machine to ensure that this major acquisition was received. f. Inspection of tangible assets
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misevaluation. The main finding is that low leverage firms are those that raised funds when their market valuations were high (measured by the book-to-market ratio)‚ while high leverage firms are those that raised funds when their market valuations were low. The influence of past market valuations in capital structure is economically significant and statistically robust. The influence of past market valuations on capital structure is also quite persistent‚ this means that they have a long-run impact. The
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Muse are experienced media investors 3. Valuation 3.1 Valuation Method 3.2 FCF of BT Yellow Pages 3.3 FCF of Yellow Book USA 3.4 Interest Tax Shield 3.5 Valuation Result 4. Other Issues 4.1 the Transaction Method of this Deal 4.2 Sensitivity Analysis Exhibit Exhibit 1: Re-Projection and pro-forma of BT Yellow Pages Exhibit 2: Data for Comparable Listed Companies (five-year average unless otherwise indicated) Exhibit 3: CCF Valuation for BT Yellow Pages Exhibit 4: Re-Projection
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Professor: José Tudela Martins Students: João Pedro Jesus‚ Maria Kostyunina & Marta Gonçalves Agenda • • • • • • Problem Statement Antamina Project Overview Assumptions Prices Forecast DCF Valuation: 3 Scenarios Options Valuation Real Options Option to Abandon • Re‐valuation according to changes Expropriation Block Funds • Main Conclusions Location of Antamina Problem Statement How much is Antamina worth? Impact of a 5% per year risk of expropriation or a possibility of a two
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Discounted Cash Flow Valuation of Aggregate Reserves Discounted Cash Flow Valuation – Proved Developed Reserves Discounted Cash Flow Valuation – Proved Undeveloped Reserves Discounted Cash Flow Valuation – Probable Reserves Discounted Cash Flow Valuation – Possible Reserves Question 3 To value MW Petroleum we would consider the assets in place and the option bearing assets discretely. The assets in place consist of the proved developed reserves since they are already producing a
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will ask someone (cold call) for the lessons learned in the case. You should be able to concisely summarize the key learning objectives derived from the readings‚ the case and/or the class discussion. USE OF EXCEL TEMPLATES Try to develop a valuation excel template that allows you to enter data regarding an asset/cost approach‚ comparable market value approach‚ and discounted cash flow approaches. I have posted a few examples on Blackboard under “Resources”. You can use this template for the
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Venture Capitalists: Trendsetter Inc. TEACHING ENTREPRENEURIAL THOUGHT & ACTION 20 March 2012 Richard T. Bliss‚ PhD Trendsetter Inc. Learning Objectives 1. The entrepreneur/VC relationship 2. Exposure to deal term sheets 3. Moving beyond valuation 4. VC negotiations 2 The Entrepreneur/VC Relationship Entrepreneur VC 3 The Entrepreneur/VC Relationship • Provisions to address adverse selection − due diligence − staging/milestones − use of convertible preferred shares • Provisions
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