Investment Banking

Valuation, Leveraged Buyouts,

and Mergers & Acquisitions
Precedent Transactions Analysis - Template

JOSHUA ROSENBAUM
JOSHUA PEARL

($ in millions)

List of Comparable Acquisitions

Date
Announced

Transaction
Acquirer

Target

Type

Target Business Description

Equity

Enterprise

LTM

Value

Value

Sales

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

12/30/1899

Acquirer

Target

NA

[to come]

ValueCo Corporation
Precedent Transactions Analysis
($ in millions)

Enterprise Value /
Date
Announced

Acquirer

Transaction

Purchase

Equity

Type

Consideration

Value

Value

LTM
EBITDA

LTM
EBIT

LTM
EBITDA
Margin

Equity Value /

LTM
Sales

LTM
Net Income

Premiums Paid
Days Prior to Unaffected
1

30

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

12/30/1899

Acquirer

Target

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Mean
Median

NA
NA

NA
NA

NA
NA

NA
NA

NA
NA

N NA
N NA

NA
NA

NA
NA

High
Low

0.0x
0.0x

0.0x
0.0x

0.0x
0.0x

0%
0%

0.0x
0.0x

0%
0%

0%
0%

0%
0%

Source: Company filings

Target

Enterprise

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Acquisition of Target by Acquirer

Input Page
($ in millions, except per share data)

General Information
Target
Ticker

Target
TRGT

Reported Income Statement

Fiscal Year Ending

Marginal Tax Rate

Dec-30
-

Acquirer
Ticker

Acquirer
ACQR

Fiscal Year Ending

Dec-30

Date Announced
Date Effective
Transaction Type
Purchase Consideration

12/30/1899
12/30/1899
NA
NA

Calculation of Equity and Enterprise Value

Offer Price per Share
Cash Offer Price per Share
Stock Offer Price per Share
Exchange Ratio
Acquirer Share Price
Offer Price per Share

Fully Diluted Shares Outstanding

Implied Equity Value

Target Description
FYE

Prior
Stub

Current
Stub

LTM

12/30/1899
-

12/30/1899
-

12/30/1899
-

12/30/1899
-

Other Expense / (Income)

EBIT

Interest Expense
Pre-tax Income
Income Taxes
Noncontrolling Interest
Preferred Dividends

Net Income
Effective Tax Rate

NA

NA

NA

NA

Weighted Avg. Diluted Shares

Diluted EPS

NA

NA

NA

NA

Adjusted Income Statement

Reported Gross Profit
Non-recurring Items in COGS

NA

NA

NA

NA

Calculation of Fully Diluted Shares Outstanding

Basic Shares Outstanding
Plus: Shares from In-the-Money Options

Less: Shares Repurchased from Option Proceeds

Net New Shares from Options

Plus: Shares from Convertible Securities

Fully Diluted Shares Outstanding

Sales
COGS
Gross Profit
SG&A

Adjusted Gross Profit

% margin

[to come]

Implied Enterprise Value

Plus: Total Debt
Plus: Preferred Stock

Reported EBIT
Non-recurring Items in COGS

Plus: Noncontrolling Interest

Less: Cash and Cash Equivalents

Other Non-recurring Items

Adjusted EBIT

Implied Enterprise Value

Acquirer Description
[to come]

Comments
[to come]

NA

NA

NA

NA

NA

NA

NA

NA

Reported Net Income

Non-recurring Items in COGS
Other Non-recurring Items
Non-operating Non-rec. Items

Tranche
Batch 1
Batch 2
Batch 3
Batch 4
Batch 5
Total

Tax Adjustment
Adjusted Net Income

Convertible Securities

NA

NA

NA

NA

Issue 1

Conversion
Price
-

Conversion
Ratio
-

Issue 2
Issue 3
Issue 4
Issue 5

% margin

Options/Warrants
LTM Transaction Multiples
EV/Sales
Metric
EV/EBITDA
Metric
EV/EBIT
Metric
P/E

NA
NA
NA
NA

Metric
Premiums Paid
Transaction Announcement
1 Day Prior
Unaffected Share Price
1 Day Prior
7 Days Prior
30 Days Prior

% margin
-

Premium
NA
NA
NA
NA

Source Documents
Target 10-K
Target 10-Q
Target 8-K
Target DEFM14A
Acquirer 424B
Acquirer 8-K

Depreciation & Amortization

Adjusted EBITDA
% margin

Period
12/30/1899
12/30/1899

Number of
Shares
-

Amount
Adjusted Diluted EPS
Cash Flow Statement Data
Depreciation & Amortization
% sales

NA

NA

NA

NA

Capital Expenditures
% sales

NA

NA

NA

NA

Date Filed
12/30/1899
12/30/1899
12/30/1899

Notes
(1) [to come]
(2) [to come]

12/30/1899
12/30/1899
12/30/1899

(3) [to come]

(4) [to come]
(5) [to come]

Total

Exercise
Price
-

In-the-Money
Shares
-

Proceeds
-

New
Shares
-

Copyright 2009 by Joshua Rosenbaum and Joshua Pearl. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording, scanning, or
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Library of Congress Cataloging-in-Publication Data:

ISBN-13 978-0-470-44220-3
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1