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The M&A team at Big Dog Enterprises has evaluated acquiring Piper Puppy Toys (PPT) and prepared the following Valuation Waterfall Chart.Bob Barker, the CEO of

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The M&A team at Big Dog Enterprises has evaluated acquiring Piper Puppy Toys (PPT) and prepared the following Valuation Waterfall Chart.Bob Barker, the CEO of Big Dog, really wants to win this auction and believes that no other bidder can match the synergies that Big Dog can bring to PPT.

(a) What does the $100,000 synergy for Compounding represent? and (b) What is the highest bid that you are comfortable recommending to Barker?Be sure to explain your logic for the bid recommendation.

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