Using the M&A Valuation & Deal Structuring Model on the Website

question 29

Short Answer

Using the M&A Valuation & Deal Structuring Model on the website accompanying this text and the data
contained in the cells as a starting point, complete the following:
a. What is the enterprise and equity value of Target on the Valuation Worksheet?
b. Increase the sales growth rate by one percentage point (i.e., to 6.5%) on the Target Assumptions Worksheet.
What is the impact on the Target’s enterprise and equity values? (Hint: See Valuation Worksheet)
Close model but do not save results.

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Definitions:

Credits

Accounting entries that increase liability, revenue, or equity accounts and decrease asset or expense accounts.

Transaction

Refers to an agreement or exchange between two or more parties that results in the movement of money or resources.

Exchanges

Transactions where goods, services, or securities are traded between two parties without the use of cash.

Other Parties

Refers to third parties or external entities involved in transactions or agreements outside of the primary parties concerned.