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Firm A is considering the acquisition of Firm B. The data for valuing the acquisition is: Percent of Revenue Percent Revenue Growth 3 Terminal Value
Firm A is considering the acquisition of Firm B. The data for valuing the acquisition is: Percent of Revenue Percent Revenue Growth 3 Terminal Value Growth 3 COGS 55 WACC 10.94 SG&A 20 Tax Rate 39 NWC 22 Annual Depreciation, $, 1000s 1,000,000 Capital Expenditures, $ 800,000 Current revenues, $ 9,708,740 Using a 5-year valuation window + terminal value (TV), what is the enterprise value of firm B? The following video works through this example, assuming there is no synergy
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