D 2 Exercise 3. Consider the following information for all equy firms. And Firm Total earnings 5.000 $1,100 Shares outstanding GOD 400 Price per share 570 $15 9 10 Prm Als acquiring Firm by changing 100 of its new shares for all the 111 What is the cost of the merger of the merged form is worth 561,000? (the number of shares of them is 100-700 12 2. What will happen to the Mere Firm's Caming Per Share UPSI? 113 What will happen to the MergedFirm's Price Earnings Ratio (PER? ta 15 Answers Ti / 17 Value of Merged firm 18 of share of Merged firm 19 Value of share of Merged Firm 20 of Exchanged shares 21 Cost of the merger 22 3127 24 Earning Firm A 25 Earning Firm 26 Total Carning 27. of share of Merged firm 28 EPS 29 30 31 31 Value of share of Merged Firm 12 EPS 33 PER 35 Intructions Case Study 1 Case Study 2 Valuation in the case of MBA 19 20 21 22 23 24 26 27 annmunish" 28 29 30 32 Camera Como Mane La Headquarter Buyer Buyer Com The the Deals Total Constit Shad SAW 55.23. w Equity (SAR) 55723 de VAR implied Equity IT treme 132 Creating Equity Back Val 1.22 Derfor Heported current De Summary Casa Hmar Her as tid Mate Date Chale Lorient Date 2200 Can Bele Definitive Agent Date 2020 CHOD aalai Part Det BG Company Name Headquarters Buy-side Paris The Center fra hele Buyer Company Transaction Values Cunes offered Os 2020 Current Offer Dame Exchange Exchange Rate Corside She SAR Consideration to Shareholder 55723 (SAR) Total Net Ticton Value Instructions Case Study 1 Case Study 2 Valuation in the case of MBA 34 35 36 37 78 39 20 41 42 43 444 45 61 of IN 724 Coudy D Case Study 1 9 TO ABC Power is an Energy manufacturer in Saudi Arabia (fictitious example) It is going to hire a Merger and Acquisition advisor ABC Power has SAR 900 million in revente 590 million in EBITDA. SARIO million in debt. XYZ Power is KSA Energy manufacturer XYZ Power (Target Company) being sold at possible price of SAR 225 million. Albild Capital proposes to act an ABC M&A advisor Goldman Sachs also was to act as ABC". MRA advisor Gold. Sache told ABC Power management that it will be a better to the Add Capital because . More M&A experience (w I in global league tables) More M&A experience in the energy sector Larger M&A star More valuation experiences Industry knowledge with an eight-person group of equity Analysis in New York, who specialize in writing research on energy companies Fee structure of SAR 450.000 upfront and I sticcess fee Ability to help ABC Power raise the SAR 225 million purchase price 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 - - Question 1. Pretend you are trying to convince ABC Powerth Albilad Capital will provide better advice than Goldman Sachs. What are your arguments? Question 2: Pretend you are the CEO of ABC Power What kind of questions will you ask Albilad Capital? Why is Albilad Capital better than Goldman for the XYZ Power deal? Play the opposing side MIMI Month D 2 Exercise 3. Consider the following information for all equy firms. And Firm Total earnings 5.000 $1,100 Shares outstanding GOD 400 Price per share 570 $15 9 10 Prm Als acquiring Firm by changing 100 of its new shares for all the 111 What is the cost of the merger of the merged form is worth 561,000? (the number of shares of them is 100-700 12 2. What will happen to the Mere Firm's Caming Per Share UPSI? 113 What will happen to the MergedFirm's Price Earnings Ratio (PER? ta 15 Answers Ti / 17 Value of Merged firm 18 of share of Merged firm 19 Value of share of Merged Firm 20 of Exchanged shares 21 Cost of the merger 22 3127 24 Earning Firm A 25 Earning Firm 26 Total Carning 27. of share of Merged firm 28 EPS 29 30 31 31 Value of share of Merged Firm 12 EPS 33 PER 35 Intructions Case Study 1 Case Study 2 Valuation in the case of MBA 19 20 21 22 23 24 26 27 annmunish" 28 29 30 32 Camera Como Mane La Headquarter Buyer Buyer Com The the Deals Total Constit Shad SAW 55.23. w Equity (SAR) 55723 de VAR implied Equity IT treme 132 Creating Equity Back Val 1.22 Derfor Heported current De Summary Casa Hmar Her as tid Mate Date Chale Lorient Date 2200 Can Bele Definitive Agent Date 2020 CHOD aalai Part Det BG Company Name Headquarters Buy-side Paris The Center fra hele Buyer Company Transaction Values Cunes offered Os 2020 Current Offer Dame Exchange Exchange Rate Corside She SAR Consideration to Shareholder 55723 (SAR) Total Net Ticton Value Instructions Case Study 1 Case Study 2 Valuation in the case of MBA 34 35 36 37 78 39 20 41 42 43 444 45 61 of IN 724 Coudy D Case Study 1 9 TO ABC Power is an Energy manufacturer in Saudi Arabia (fictitious example) It is going to hire a Merger and Acquisition advisor ABC Power has SAR 900 million in revente 590 million in EBITDA. SARIO million in debt. XYZ Power is KSA Energy manufacturer XYZ Power (Target Company) being sold at possible price of SAR 225 million. Albild Capital proposes to act an ABC M&A advisor Goldman Sachs also was to act as ABC". MRA advisor Gold. Sache told ABC Power management that it will be a better to the Add Capital because . More M&A experience (w I in global league tables) More M&A experience in the energy sector Larger M&A star More valuation experiences Industry knowledge with an eight-person group of equity Analysis in New York, who specialize in writing research on energy companies Fee structure of SAR 450.000 upfront and I sticcess fee Ability to help ABC Power raise the SAR 225 million purchase price 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 - - Question 1. Pretend you are trying to convince ABC Powerth Albilad Capital will provide better advice than Goldman Sachs. What are your arguments? Question 2: Pretend you are the CEO of ABC Power What kind of questions will you ask Albilad Capital? Why is Albilad Capital better than Goldman for the XYZ Power deal? Play the opposing side MIMI Month