Using the M&A Valuation & Deal Structuring Model Accompanying This

question 51

Short Answer

Using the M&A Valuation & Deal Structuring Model accompanying this text:
a. On the Valuation Worksheet, note the enterprise and equity values for Newco.
b. On the Summary Worksheet under Incremental Sales Synergy, change incremental
revenue by $200 million in the first year and $250 million in the second year and
$350 in the third year.
What is the impact on Newco’s enterprise and equity values? (Hint: See Valuation Worksheet)
Close model but do not save results.

---

Definitions:

Human Resources

The department within an organization that focuses on recruitment, management, and guidance for the people who work in the organization.

Downsizing

The process of reducing the number of employees within an organization for economic or strategic reasons.

Restructuring

The corporate action of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

Insidious Consequences

Negative outcomes that gradually and subtly develop over time, often as a result of certain actions or decisions.