As the newly-appointed Chief Financial Officer (CFO) of Anycorp Inc., you've been tasked with valuing a potential merger with a fallen, once-competitive rival, Initech LLC. If the acquisition price of Initech LLC is "sufficiently attractive", then you'll be tasked later on (in this course) with ensuring that all of the necessary, high-level financial requirements for executing this merger are in place. While many methods exist to value companies such as a "comparables /multiples" approaches , "liquidation value" approaches, and "replacement cost" approaches, Initech LLC has about seven years of unaudited financial statements from which Free Cash Flows can be estimated discounted , and then added to arrive at the company value . I Your group's task in this analysis is to come up with the preliminary considerations necessary to understand discounting (read: time value of money) as well as some of the (possibly missing) information you'll need to find the value of Initech LLC.

APPROACH

For each case, the group will want to focus on and address the following Seven Factors in their analysis: ( ) Question at Hand (2) Information Given (data, facts, observations, experiences (3) Assumptions (explicit or implicit/understood (4) Concepts (theories, definitions, laws, models, methods, methodologies (5) Calculations Necessary actual number crunching and end results (6) Interpretation conclusions, solutions (7) Implications and Consequences what is the end result, unintended consequences? Note that responses such as "We are not quite sure..." and "We need more information..." are perfectly acceptable, assuming that the group discusses what information it would take to come to a firm conclusion or make a solid recommendation (with each recommendation briefly hedged with an addressing of the limitations of the recommendation /analysis ).

As the newly-appointed Chief Financial Orficer (CFO) of Anycorp Inc., yourve heen tasked with valuing a potential merger with a fallen, once-compelitive rival, Initech I.I. . If the acquisition price of lnitech L.LC is "sufficiently attractive", then youll bo tusked later on (in this coune) with ensuring that all of the necessary, high-level financial requirements for executing this merger are in place. While many methods exist to value eompanies such as a "comparoblesimultiples" aproach=i, "liquidation valoe" appeoaches, and "replacemen cost" approselien, Inifech fle has about seven years of unaudited financial statements from which Fro Cash Mows can be estimated, discounted, and then added to arrive at the company valie. Your Goup's tack in this analysis is to come up with the preliminary considerations necesary to understand discounting (read: time valee of mency) as well as some of the (possibly mising) information you'll need to find the value of laitech I 1.C. Please report your results in accondance with Course Syllahus and Case Srudy Guade. Introdestisen (abjoct fo the ipciffe detale and isatractions of the courer) Enpectarikas (1) Quesiden ar 11ma (2) information ferven (data, flack, obuctrations, exgericuces) (3) Nesumptioes fexplicit or inplicit weaferstood) (6) Irserpectatins \{conchasions, selytacist (7) implications and Consequeress \{ ehat is the cod result, aninteded conscquences? make a sotid foccomitiendation (witl cach roccerimendation brively hedged with an addressing of the limitations of the todommendatiseniatialyist)