in a merger analyis, the enast important part of the analyis is ta detemine whether there are any operating wonorgies between the meroing comporicies. This stop ir critical in the process of estimating post -meruer cash flows and the value that the merger will bring to the firms. A merger in ahich the incemental post-merger cash floms are based on the synerglstic benefits that the merger is acpected to cause is called Lotimerge is targeting Whome for a potential frondy morger. Ater inkial discussions with the managemest of Whome, tetsMerge sende a team of analysts, engineers, and advisers to evoluate cocpected synergistic benefis and to entamate the value of operations of wholMe. This process is called due diligence. The due diligence team submits a teport stating that WhoMais current market value of equity la $48.00 million. Based on profected cash fows in the pro-forma statements, analysts caloulate that the port mecger value of eperations wall condinve to bo $48.00 mibon. Are any spergistic bentits expected frum the mergen? What is the moet Whely bidding strategr for LeteMerge Ca.? Letokespe will place a maximum bid equal to the currere valoe of whoMe Letsperge wil placie a lower bid than the current value and also the lowest in comparisen whet the other potential acquirers of whole. Suppone LetsMerge Cou is abo targeting anocher campany, Vestou inc, which has a ourrert value of se4.00 mallon. Analyts conduct Gve dilgence and extimate the post merger value of Yecyou's wauky to be 392.40 milifen. Yevou has 32.00 mallion sharew oututanding. If the merger analysts exped the synerwes to be realized, the manimum puice per thare that tetsmorge is likwy to pay if it is making a cash offer for rearou ine is thare. If the deal goes through, the pont-marger value of Vesvou to the LetsMerge shareholders is The total value of the merged cortipany's equity wil be 16.14\% of the shares of the merged company? 5 S.s milition stares: 11.09 mition shares 739 millioh shares 2.24 million thares