Question
Confused: Please show work. Use info below to calculate TargetCo's Enterprise value and EV/Sales (LTM) multiple on the basis of an Mergers and Acquisitions deal
Confused: Please show work.
Use info below to calculate TargetCo's Enterprise value and EV/Sales (LTM) multiple on the basis of an Mergers and Acquisitions deal that took place between TargetCo and AcquirerCo with FIXED EXCHANGE RATIO STRUCTURE based on basic shares outstanding. (Assumptions: $ in millions, except per share data; shares in millions)
Offer Price Per Share $20
Acquirer Share Price $40
Acquirer Basic Shares Outstanding 200
Target Debt $900
Target Preferred Stock $150
Target Minority Interest $350
Target Cash $200
Target Sales (Mar. 31, 2014 -Financial Statement) $2500
Target Sales (Dec. 31, 2013 - Financial Statement) $4000
Target Sales (Sept. 30, 2013- Financial Statement) $3000
Target Sales (Jun. 30, 2013- Financial Statement) $2000
Target Sales (Mar. 31, 2013- Financial Statement) $1500
Target Options and Warrants: (Tranch - No. of Shares - Exercise Price $ )
Tranch 1 - 100 - $15
Tranch 2 - 150 - $18
Tranch 3 - 250 - $25
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