Calculate the maximum offer

Assignment Help Business Economics
Reference no: EM132083366

The LTE Inc, a financial advisory firm, is putting together the deal book and running the valuation analysis for various private clients. Assume that you are the "rock-star analyst" in the firm and asked to lead the valuation team to finalize the offer. A 15% control premium and a 30% illiquidity discount are justified for all the situations. Also, assume that there are 100 million shares in all the target companies.

What adjustments should be applied in each scenario and calculate the maximum offer.

Deal A: A private equity (PE) firm, financial buyer, acquires a privately held company with dispersed shareholders. The intrinsic value of common equity based on the Relative Valuation-public comparables model is estimated to be $90 million. the maximum offer to existing shareholders?

Deal C: A strategic buyer acquires a privately held company with a majority shareholder, who owns 55% of the shares of this company. The intrinsic value of common equity based on the APV model is estimated to be $90 million and the present value of synergies is estimated to be $10 million. the maximum offer to the controlling shareholder? To the minority shareholders?

Reference no: EM132083366

Questions Cloud

Overall portfolio risk and raise return to risk ratio : Why the addition of a risk-free asset will lower the overall portfolio risk and raise return to risk ratio?
Write only one long logical statement to cover all these : Write ONLY ONE long logical statement in c++ to cover all these conditions using and, or, and not conditions with the necessary variables.
What would happen to the required return on the company : Assume the company can use the proceeds to retire $10 million worth of equity, (a) what would happen to the firm's WACC?
Find window size required for maximum network utilization : The network data rate is 100 Mbps and the distance between the sender and the receiver is 36,000 km.
Calculate the maximum offer : What adjustments should be applied in each scenario and calculate the maximum offer.
Write true of false to the outfile descirbed in the function : To avoid confusion all I want to know is how to be able to write true of false to the outFile descirbed in the function.
Determine how many data values to process for each : Determines if the integer is abundant, deficient, perfect or neither and displays a message that includes the integer and which of the 4 categories.
Graduate management aptitude test : Business schools A and B reported the following summary of GMAT (Graduate Management Aptitude Test) mathematics scores. Test the claim
Determine the output of the neuron : The activation function is linear, where the constant of proportionality equals 2 - that is, the activation function is given by f(net) = 2 × net.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd