The Exxon$-$Mobil Merger

Application of comparable transactions analysis

Please conduct the comparable transactions analysis for the Exxon$-$Mobil merger.

Please use three major oil mergers in the late $1990$ s as comparable transactions. Data provided in the tables below.

Use the transaction multiples in the BP$-$Amoco transaction only.

Explain why your results might differ substantially from the $$74\mathrm{.}2$ billion paid by Exxon.

$\backslash$table$[[($billion dollars$),$BP$-$Amoco,Chevron Texaco,Philips Conoco$],[$Total paid,$47\mathrm{.}1,35\mathrm{.}8,15\mathrm{.}2],[$Market value target,$39\mathrm{.}1,30\mathrm{.}4,15\mathrm{.}2],[$Market value combined,$113\mathrm{.}3,85\mathrm{.}4,34\mathrm{.}9],[$Book value target,$15\mathrm{.}7,12\mathrm{.}8,6\mathrm{.}6],[$LTM net income target,$2\mathrm{.}1,2\mathrm{.}3,2\mathrm{.}0],[$LTM sales target,$34\mathrm{.}2,46\mathrm{.}4,40\mathrm{.}6],[$Premium paid, $\%$ target,$22\mathrm{.}3\%,17\mathrm{.}7\%,0\%$