Please find attached the questions. This is an M&A problem questions and need to be solved according to guidelines by Wall Street Prep. The solutions needs to be done on EXCEL.

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Please find attached the questions. This is an M&A problem questions and need to be solved according to guidelines by Wall Street Prep. The solutions needs to be done on EXCEL.
Answered Same DayMar 10, 2021

Answer To: Please find attached the questions. This is an M&A problem questions and need to be solved according...

Tanmoy answered on Mar 12 2021
156 Votes
Sheet1
    Q.1    Accretion/ Dilution Analysis
        Particulars    Acquirer Glocabe (in $)    Target Jupiter (in $)    Proforma
    
    Acquirer
        Current Share price    30
        Diluted Shares Outstanding    4500000
        2019 EPS forecast    3.12
        Acquirer shares issued in transaction    4400000
        Target
        Pre-deal Share Price        50
        Offer price per share        60
        % Offer Premium        20%
        Shares Outstanding        2200000
        Offer Value        132000000
        2019 EPS forecast        4.51
        Accretion/ Dilution Analysis
        Implied Standalone Net Income    14040000    9922000
        Proforma Net Income            23962000
        Proforma Shares Outstanding            8900000
        Proforma Earning per share (EPS)            2.69
        Acquirer standalone EPS            3.12
        Accretion/ Dilution per share            -0.43
        Accretion/ Dilution %            -13.7%
        Hence, the acquisition is negative and is dilutive for the shareholders
    Q.2    Particulars    Acquirer Pegasus ($ in millions)    Target Chimera ($ in million)    Proforma ($ in million)
        Implied Standalone Net Income    14.04    9.92                Deal Assumptions
        Implied Standalone Pretax Net Income    23.40    15.26                Deal Date    1/1/17
        Proforma Pretax Income - Unadjusted            38661538
        Less: Interest Expenses...
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