Question
the following questions are related to the merger of Shire & Baxalta in 2016 so all the answer you may found it in the S4
the following questions are related to the merger of Shire & Baxalta in 2016
so all the answer you may found it in the S4 form of Shire
S4 for Shire : http://otp.investis.com/clients/us/shire1/SEC/sec-show.aspx?Type=html&FilingId=11318308&CIK=0000936402&Index=10000
QUESTIONS :
1. From the information available, what are the financial reporting implications of the merger/acquisition?
a)- Are pro forma financial statements presented?
b)-What amount of goodwill is recorded?
2- Proposed purchased price and fees.
a) What is the amount of direct acquisition cost?List the components of the direct acquisition costs ?
b)What is the amount stock issuance costs or any other additional costs?
3- Valuation:
a)What is the amount of exchange ratio?
b).What valuation methods were used to determine the purchase price?
c) What valuation method was used to value the target company? If the discounted cash flow (DCF) method was used to value the business combination, what amount was assigned to terminal value?
d) If DCF analysis was used, what was the length of forecast period?What were the years?
e)What was the estimated stand-alone value of the target company?
f)What was the estimated stand-alone value plus expected synergies resulting from cost savings and revenue increases.
g)What discount rate was used to calculate the present value of future cash flows?
h)Who prepared the valuation and fairness opinion letter(s)?
I)What did the fairness opinion letter(s) say about the proposed combination, exchange ratio, and the asking price?
Thank you very much for your help ,I really appreciate it.
this is have of the question , i would do the other in my own .But really i need help to do these parts .I wouldn't take the tutor's work as my work , i'll rewrite it in my own
Note : if you brung information from out the S4 please provide the refrence
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