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The data below shows a summary of one of the acquirers' deals financials obtained from the case study companies to analyse the possible value of
The data below shows a summary of one of the acquirers' deals financials obtained from the case study companies to analyse the possible value of the potential synergy between the two Companies, Google (A) and WhatsApp Bakery (B), as part of the due diligence process. Google (A) acquires WhatsApp (B) and will hereafter be referred to as Firm A and Firm B respectively. Google (A): expected FCF1=R1000m, WACC=10%, g=6%, and 500m shares of common stock. WhatsApp (B): expected FCF1=R75M, WACC=12%, g=6%, and 100m shares of common stock. Assuming a combined Firm AB will generate a free cash flow of FCF1=R1130m in year one (t=1), calculate the incremental or FCFAB
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