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Case Study 4. Company A acquires Company B for $29,000 in cash. Company A has 2,500 shares at a market price of $ 30
Case Study 4. Company A acquires Company B for $29,000 in cash. Company A has 2,500 shares at a market price of $ 30 per share. Company B has 1,600 shares at a market price of $15 per share. None of the companies have any debt. The net present value of the purchase (sinergy value) is $ 4,500. What is the price-per-share after the acquisition for company A? Case Study 5. Company X is merging with Company Y and Company X shareholders will receive $35,000 in Company's Y shares as a compensation. The additional value due to the merger is $2,500. Company X has 2,000 shares at a market price of $16 per share. Company Y has 1,200 shares at a market price of $40 per share. What is the value per share after the merger? Case Study 6. The value of shareholder's equity invested in a business, which is analysed for and M&A deal, was estimated though DCF approach at $500 million. The market value of the assets is USD 600 million, 10% of which is represented by intangible assets: patents and trademarks. The market value of the net debt is $150 million, given that the interest rate on the market is 15%. Under these circumstances, which is the value of goodwill/badwill (GW or BW).
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