Description

In this project, groups of $3-4$ students each will work on several M&A deals. Two

teams will be assigned to each deal, one for the Target firm and the other for the acquirer

firm. Each team will conduct an analysis of firm valuation, market reactions, synergy

evaluation, and make a recommendation on whether an institutional investor should

purchase the stock they focus on$.$

$-$ Projection of your firm$$s future cash flows: You should identify both stand$-$alone

cash flows and pro$-$forma cash flows $($i$.$e$.$ cash flows including merger synergies and

other deal$-$related cash flows, such as cash payout$).$

o You may obtain the projections by management, analysts, financial advisors,

or form your own projections.

o www$.$sec$.$gov is a good resource of information

Chevron $($CVX$)-$ Hess$($HES$)($Announced $10/23/2023)$Chevron $($CVX$)-$ Hess$($HES$)($Announced $10/23/2023)$

Chevron Corp $($Chevron$)$ definitively agreed to merge with Hess Corp $($Hess$),$ a New York City$-$

based crude oil and natural gas exploration company, in a stock swap

Chevron Corp $($Chevron$)$ definitively agreed to merge with Hess Corp $($Hess$),$ a New York Citybased crude oil and natural gas exploration company, in a stock swap transaction valued at a

total USD $52\mathrm{.}94$ bil. Chevron offered $1\mathrm{.}025$ common shares per Hess share held. Based on

Chevron's closing stock price of USD $166\mathrm{.}83$ on $20$ October $2023,$ the last full trading prior to

the announcement, each Hess share was valued at USD $171\mathrm{.}001.$ Upon completion, Hess was to

be delisted from the New York Stock Exchange.

Create a pro forma of cash flows of the M&A$.$ Using Yahoo Finance can help.