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    Merger Model

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    cyberdevil321
    The document outlines the basic assumptions and financial details of a hypothetical merger between two companies. It includes details like the purchase price breakdown, share prices, debt levels, tax rates, and pre- and post-merger income statements and balance sheets. The key figures are a $600 million purchase price split 33.3% each in cash, debt, and stock, along with projections of combined revenue, expenses, earnings and share counts for the first two years after the transaction.

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    Merger Model

    Uploaded by

    cyberdevil321
    288 views3 pages
    The document outlines the basic assumptions and financial details of a hypothetical merger between two companies. It includes details like the purchase price breakdown, share prices, debt levels, tax rates, and pre- and post-merger income statements and balance sheets. The key figures are a $600 million purchase price split 33.3% each in cash, debt, and stock, along with projections of combined revenue, expenses, earnings and share counts for the first two years after the transaction.

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    Accretion Dilution Before

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    The document outlines the basic assumptions and financial details of a hypothetical merger between two companies. It includes details like the purchase price breakdown, share prices, debt levels, tax rates, and pre- and post-merger income statements and balance sheets. The key figures are a $600 million purchase price split 33.3% each in cash, debt, and stock, along with projections of combined revenue, expenses, earnings and share counts for the first two years after the transaction.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    288 views3 pages

    Merger Model

    Uploaded by

    cyberdevil321
    The document outlines the basic assumptions and financial details of a hypothetical merger between two companies. It includes details like the purchase price breakdown, share prices, debt levels, tax rates, and pre- and post-merger income statements and balance sheets. The key figures are a $600 million purchase price split 33.3% each in cash, debt, and stock, along with projections of combined revenue, expenses, earnings and share counts for the first two years after the transaction.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 3

    Basic Merger Model ($ in Millions Except Per Share Amounts) Transaction Assumptions Purchase Price: % Cash: % Debt: % Stock:

    Foregone Cash Interest Rate: Buyer - Financial Profile Share Price: Shares Outstanding: Market Cap: Tax Rate: Buyer - Income Statement Year 1 $200 $40 $80 $80 $10 $90 $36 $54 $0.54 Year 2 $250 $50 $90 $110 $10 $120 $48 $72 $0.72 $10.00 100.0 $1,000 40% $600 33.3% 33.3% 33.3% 4.0%

    Cash Used: Debt Issued: New Shares Issued: Debt Interest Rate: Seller - Financial Profile Share Price: Shares Outstanding: Market Cap: Tax Rate: Seller - Income Statement

    Revenue: Cost of Goods Sold: Operating Expenses: Operating Income: Interest Income / (Expense): Pre-Tax Income: Income Taxes: Net Income: Earnings Per Share (EPS): Combined Income Statement

    Revenue: Cost of Goods Sold: Operating Expenses: Operating Income: Interest Income / (Expense): Pre-Tax Income: Income Taxes: Net Income: Earnings Per Share (EPS):

    Year 1 Combined Revenue: Cost of Goods Sold: Operating Expenses: Operating Income: Interest Income / (Expense): Foregone Interest on Cash:

    Year 2

    Interest Paid on New Debt: Pre-Tax Income: Income Tax Provision: Net Income: Earnings Per Share (EPS): Shares Outstanding: Accretion / Dilution: Accretion / Dilution %:

    $200 $200 20.0 9.0%

    $10.00 50.0 $500 35%

    Year 1 $100 $30 $30 $40 $0 $40 $14 $26 $0.52

    Year 2 $110 $32 $33 $45 $0 $45 $16 $29 $0.59

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