Assumptions:

Premium:
Purchase Price:
Debt:
Stock:
Synergies % Target Sales:
Synergy Phase-In:

Company A:
Revenue:
EBITDA:
EBIT:
Interest Expense:
Pre-Tax Income:
Net Income:
EPS:
Market Cap:
Net Debt:
Enterprise Value:
Share Price:
Shares (MM):
Tax Rate:
Combined:
Synergies:
Total Revenue:
EBITDA:
EBIT:
Interest Expense:
Pre-Tax Income:
Net Income:
Share Count (MM):
EPS:
Accretion / (Dilution):

25%

Year 1
120.0
30.0
20.0
2.0
18.0
13.5

0.79

40%
30.8
80%
20%
5%
50%

Year 2
126.0
32.0
22.0
2.0
20.0
15.0

0.88

Debt Interest:
Debt Raised:
Shares Issued (MM):
100%

Year 3
132.0
33.0
23.0
2.0
21.0
15.8

0.93

85.0
40.0
125.0

5.00
17.0
25%
Year 1
$
0.9
190.9
51.9
36.9
5.0
31.8
23.9
18.23

1.31

Market Cap:
Net Debt:
Enterprise Value:
Share Price:
Shares (MM):
Tax Rate:
Year 2
$
2.0
209.0
58.0
43.0
5.0
38.0
28.5
18.23

1.56

Year 3
$
4.7
229.7
65.7
50.7
5.0
45.6
34.2
18.23

1.88

64.9%

77.1%

102.5%

1.4 x
10.3 x

1.3 x
11.5 x

1.1 x
13.0 x

Pro-Forma Credit Stats:

Net Debt / EBITDA:
EBITDA / Interest:

Company B:
Revenue:
EBITDA:
EBIT:
Interest Expense:
Pre-Tax Income:
Net Income:
EPS:

8.25%

Year 1

70.0
21.0
16.0
1.0
15.0
9.0

6.14

22.0
10.0
32.0
15.00
1.5
40%

24.6
1.232

Year 2

81.0
24.0
19.0
1.0
18.0
10.8

7.36

Year 3

93.0
28.0
23.0
1.0
22.0
13.2

9.00