Quiz 7 Transaction Analysis Format

Question 1

Transaction Analysis of Second Company Part 1

Answer 1

Purchase Price for Equity
Purchase Price Allocation
Fair Value of Assets Acquired
Identifiable Assets
Goodwill
Enterprise Value
(Liabilities Assumed)
Equity Value

Question 2

Transaction Analysis of Second Company Part 2

Answer 2

Sales
EBITDA
Implied Transaction Multiples
Enterprise Value to: Sales; EBITDA
Goodwill to: EBITDA; Ent. Value; Equity Value

Question 3

Valuation Reasonableness Test Part 1

Answer 3

Range:
FMV of Shares
Net Debt
Enterprise Value
Comprised of:
Identifiable Assets
Goodwill

Question 4

Valuation Reasonableness Test Part 2

Answer 4

Sales

EBITDA

Question 5

Valuation Reasonableness Test Part 3

Answer 5

Implied valuation multiples
Enterprise value to:
Sales
EBITDA
Goodwill to:
EBITDA
Enterprise Value
Equity Value

Question 6

Valuation Reasonableness Test Conclusion

Answer 6

Based on comparison to NelTech transaction multiples, valuation of Indigo Technologies and the related implied goodwill appear reasonable.