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.

Question

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.

Quizplus · Accepted Answer

The Answer is a. Before incremental sales growth:
1. Newco enterprise value: $69,255.7
2. Newco equity value: $57,412.8
b. After change in incremental sales:
1. Newco enterprise value: $70,856.4
2. Newco equity value: $59,013.5

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