on april 1st 2014 aqcuirerco acquired targetcos 100 shares the ma deal that took place between t

a) To calculate the Enterprise Value (EV) of TargetCo, we need to consider the market value of e

Question

On April 1st, 2014, AcquirerCo acquired 100% of TargetCo's shares. The M&A deal between TargetCo and AcquirerCo was based on a Fixed Exchange Ratio Structure using the number of basic shares outstanding. According to the terms of the agreement, AcquirerCo exchanged its 100 million shares for TargetCo's 100% basic shares. Assumptions: ($ in millions, except per share data; shares in millions) Offer Price Per Share: $25.00 Acquirer Share Price: $75.00 Acquirer Shares Exchanged: 100 Target Debt: $900 Target Preferred Stock: $150 Target Minority Interest: $350 Target Cash: $200 Target Sales (As of March 31, 2014 - YTD Financial Statement): $1500 Target Sales (As of December 31, 2013 - YTD Financial Statement): $3750 Target Sales (As of September 30, 2013 - YTD Financial Statement): $3000 Target Sales (As of June 30, 2013 - YTD Financial Statement): $2000 Target Sales (As of March 31, 2013 - YTD Financial Statement): $1250 Target Options and Warrants: Tranch 1: 100 shares, $30 Tranch 2: 150 shares, $28 Tranch 3: 250 shares, $27 a) What is the Enterprise Value of TargetCo? Show your work. b) What is the EV/LTM Sales multiple for TargetCo? Show your work.

          On April 1st, 2014, AcquirerCo acquired 100% of TargetCo's shares. The M&A deal between TargetCo and AcquirerCo was based on a Fixed Exchange Ratio Structure using the number of basic shares outstanding. According to the terms of the agreement, AcquirerCo exchanged its 100 million shares for TargetCo's 100% basic shares. Assumptions: ($ in millions, except per share data; shares in millions) Offer Price Per Share: $25.00 Acquirer Share Price: $75.00 Acquirer Shares Exchanged: 100 Target Debt: $900 Target Preferred Stock: $150 Target Minority Interest: $350 Target Cash: $200 Target Sales (As of March 31, 2014 - YTD Financial Statement): $1500 Target Sales (As of December 31, 2013 - YTD Financial Statement): $3750 Target Sales (As of September 30, 2013 - YTD Financial Statement): $3000 Target Sales (As of June 30, 2013 - YTD Financial Statement): $2000 Target Sales (As of March 31, 2013 - YTD Financial Statement): $1250 Target Options and Warrants: Tranch 1: 100 shares, $30 Tranch 2: 150 shares, $28 Tranch 3: 250 shares, $27

a) What is the Enterprise Value of TargetCo? Show your work.
b) What is the EV/LTM Sales multiple for TargetCo? Show your work.

Added by Christopher S.

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