Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Rosenbaum Joshua & Pearl Joshua & Joseph R. Perella

Author:Rosenbaum, Joshua & Pearl, Joshua & Joseph R. Perella [Rosenbaum, Joshua]
Language: eng
Format: mobi
ISBN: 9780470477786
Publisher: Wiley
Published: 2009-05-17T16:00:00+00:00

EXHIBIT 3.52 Perpetuity Growth Rate

The terminal value of $1,263.4 million calculated using the PGM implied a 7.0x exit multiple, adjusting for year-end discounting using the EMM (see Exhibit 3.53). This is consistent with our assumptions using the EMM approach in Exhibit 3.50.

EXHIBIT 3.53 Implied Exit Multiple

Step V. Calculate Present Value and Determine Valuation

Calculate Present Value

ValueCo’s projected annual FCF and terminal value were discounted to the present using the selected WACC midpoint of 11% (see Exhibit 3.54). We used a mid-year convention to discount projected FCF. For the terminal value calculated using the EMM, however, we used year-end discounting.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.