lboval - 44 MERGERLBOVALUATIONWORKSHEET 44 INPUT SHEET:...

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44 MERGER LBO VALUATION WORKSHEET 44 STEP 1: Estimate the total cost of the deal Price per share= 201 Debt outstanding currently (mil)= 1800 # shares outstanding (mil)= 21.9 Other costs (Investment banker etc.)= 0 Total cost of the deal= 6201.9 STEP 2: Define how the deal will be financed Repayment schedule ( as % of principal) Source Amount Int. rate 1 2 3 4 5 6 7 8 9 Equity 1000 NA Pfd. STOCK 0 0.00% Debt: Type 1 1700 16.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Debt: Type 2 3500 18.00% 0.00% 0.00% 0.00% 10.00% 10.00% 10.00% 10.00% 20.00% 20.00% Debt: Type 3 0 0.00% Debt: Type 4 0 0.00% Interest rate on debt remaining in terminal year= 12.00% Suggestion: For the first run, enter an arbitrary schedule; Check cashflows to equity; If -'ve modify schedule; STEP 3: Define rates of future growth 1 2 3 4 5 6 7 8 9 10 Revenues 14.00% 14.00% 14.00% 14.00% 14.00% 8.00% 8.00% 8.00% 8.00% 8.00% Depreciation (See below) 14.00% 14.00% 14.00% 14.00% 14.00% 8.00% 8.00% 8.00% 8.00% 8.00% Cap. Spending (See below) 14.00% 14.00% 14.00% 14.00% 14.00% 8.00% 8.00% 8.00% 8.00% 8.00%
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45 MERGER LBO VALUATION WORKSHEET 45 Working Cap : % of Revenue 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% 16.00% COGS: % of Revenues 85.68% 85.68% 85.68% 85.68% 85.68% 85.68% 85.68% 85.68% 85.68% 85.68% Default values= If you do not enter rates, the growth rates in depreciation, capital spending = growth rate in revenues. alues for COGS and Working Capital come from Step 6 below. STEP 4: GENERAL INFORMATION
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This note was uploaded on 06/28/2010 for the course MKTG 00HP01 taught by Professor Himanshu during the Spring '10 term at Indiana Institute of Technology.

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lboval - 44 MERGERLBOVALUATIONWORKSHEET 44 INPUT SHEET:...

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