Deal Information Shares calculation Acquirer Target

Basic shares 2,542.2 1,001.8

Acquirer ABC Options
Target XYZ Tranch1 36.9 3.3
Announcement date 9/4/2022 Tranch2 48.4 37.9
Offer price $45.00 Tranch3 43.6 16.3
Target's share price $42.00 Tranch4 22.9 19.1
Acquirer's share price $54.00 Tranch5 8.3
Deal value 45,868.1
Exercise price
Deal Assumptions Tranch1 $24.07 $19.53
Stock payment % 50% Tranch2 $31.06 $30.64
Transaction cost 1% Tranch3 $42.36 $35.38
Financing fee 3% Tranch4 $49.49 $45.97
Acquirer's tax rate 35% Tranch5 $56.21
New shares issued to target 424.7
In-the money options
Purchase price allocation Tranch1 36.9 3.3
Tranch2 48.4 37.9
Deal value 45,868.1 Tranch3 43.6 16.3
Transaction cost 458.7 Tranch4 22.9 -
Total purchase price 46,326.8 Tranch5 - -
Total 151.8 57.5
Net assets 2,457.0
Less: Goodwill 1,024.0 Options proceeds 5,373.4 1,802.4
Net identifiable assets 1,433.0
PP&E 10% 352.40 Dilution 52.3 17.4
Intangibles 10% 57.0
Inventories 5% 70.35 Total diluted shares 2,594.6 1,019.3
Deferred tax 167.9
Net FMV of identifiable assets 1,744.8 Balance sheet Acquirer Target Adjustment Pro forma
Assets
Goodwill Created 44,582.0 Cash and cash equivalents 5,892.0 644.0 6,536.0
Trade receivables, 4,062.0 1,216.0 5,278.0
Funding Inventories 4,400.0 1,407.0 70.4 5,877.4
Deferred income taxes 958.0 302.0 1,260.0
Sources Other current assets 1,803.0 190.0 1,993.0
Equity issued 22,934 Net Property, Plant and Equipment 14,108.0 3,524.0 352.4 17,984.4
Debt raised 24,116 Goodwill 19,610.0 1,024.0 43,558.0 64,192.0
Total 47,050 Intangible Assets 4,290.0 570.0 57.0 4,917.0
Other Assets 1,925.0 1,082.0 3,007.0
Use Deferred financing fee 723.5 723.5
Consideration 45,868 Total assets 57,048.0 9,959.0 111,768.2
Transaction cost 459
Financing fee 723 Liabilities & Stockholders' Equity
Total 47,050 Total debt 20,841.0 3,112.0 24,116.2 48,069.2
Accounts payable 3,617.0 598.0 4,215.0
Income statement Acquirer Target Accrued liabilities 7,689.0 1,705.0 9,394.0
Current fiscal year end 30-Jun-04 31-Dec-03 Dividends payable 163.0 163.0
Income taxes 2,554.0 271.0 2,825.0
EPS Deferred Income Taxes 2,261.0 652.0 167.91 3,080.9
Year0 $2.58 $1.63 Other Long-Term Liabilities 2,808.0 932.0 3,740.0
Year1 $2.85 $1.81 Minority Interest 69.0 69.0
Year2 $3.14 $1.97 Stockholders' Equity 17,278.0 2,457.0 20,477.06 40,212.1
Year3 $2.15
Total 57,048.0 9,959.0 111,768.2
Calenderize EPS
Year0 $2.58 $1.72 Pro forma P&L Year0 Year1 Year2
Year1 $2.85 $1.89 75% 100% 100%
Year2 $3.14 $2.06 Acquirer
EPS $2.58 $2.85 $3.14
Shares 2,595 2,595 2,595
Net income 6,694 7,394 8,147

Target
EPS $1.72 $1.89 $2.06
Shares 1,019.3 1,019.3 1,019.3
Net income 1,753.2 1,926.5 2,099.7

Post Deal Assumptions Combined net income 8,447.1 9,320.9 10,246.6

Pre-tax synergy $100.0 million Add: Synergy 75.0 75.0 75.0
Interest rate on additional debt 4% Less: Additional interest
Amortizing period of financing fee 5 Years Less: Amort of financing fee
Useful life of additional PP&E 10 Years Less: Additional depreciation
Useful life of additional intangibles 10 Years Less: Additional amortization
Tax impact
Pro forma net income

Pro forma shares

Pro forma EPS

Accretion (dilution)
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60%

80

14

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DCF

Merger

1. Financial Statement ke format/Definitions/Calculation/Impact Analysis

2. Ratios: Formulas/Definitions/Calculations/Interpretations

3. Valuation:
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2. DCF Questions and Answers
3. DCF Practicals: Steps/Approaches
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1. Trading Valuation Thoery
2. Trading Questions and Answers
3. Trading Practicals: Steps/Approaches
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6. Oil and Gas Financial: Projection Criteria/Why/Steps

7. Auto Sector Model: Why and How/ Steps
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