iption solutionsibig案例描述解决方案.pdfVIP

MAandMergerModelCalculationExercises–60Minutes

Pleasecompletethissetof6exercisesin60minutes.

EachexerciserequiresyoutomakecalculationsrelatedtoMAdeals,suchasEPS

accretion/dilutionandtheappropriatemixofCash,Debt,andStock.

UsetheaccompanyingExcelfiletomakeyourcalculationsandfillinallthenumbers.

Sinceyouonlyhave60minutestocompletetheseexercises,speedisessential.Movequickly!

Exercise#1:SimpleAccretion/(Dilution)Calculation

CompanyAhasasharepriceof$25.00and1millionsharesoutstanding.

CompanyBhas500,000sharesoutstanding.

CompanyAacquiresCompanyBfor$15.00pershareanduses40%stockand60%debttofund

thedeal.

CompanyAhasaNetIncomeof$4million,andCompanyBhasaNetIncomeof$1million,the

interestrateonDebtis6%,bothcompanies’taxratesare40%,andthereareafter-tax

synergiesof$250,000.

Isthisdealaccretiveordilutive?Byhowmuch?

ANSWER:It’saccretiveby$0.54,or~14%.

Exercise#2:Accretion/(Dilution)CalculationinaStockEDeal

DesignerclothingcompanyTreatYourFeet(TYF)isconsideringanacquisitionofFootLess(FL),a

discountclothingchain.Theirfinancialprofilesareshownbelow:

TYFipectedtoreportNetIncomeof$325millioninthenextyear,andFLipectedto

reportNetIncomeof$195millioninthenextyear.

Themergerwillbestructuredasastocke,withshareholdersofFLreceiving1.75

sharesofTYFstockforeachshareofFLstock.

AllexistingDebtandCashatbothentitieswillremainoutstanding.

Assumethat100%ofthepurchasepricepremiumisallocatedtoOtherIntangibleAssetswitha

30-yearamortizationperiod.

AssumethatFLdoesnothaveanyexistingGoodwillorIntangibleAssets.

UsetheinformationabovetocalculatetheEPSaccretion/dilutiontoTYFinthefirstyear

followingtheacquisitionofFL.

ANSWER:It’sdilutiveby$0.07,or~3%.