Stand alone value of Adamz

1 Change in WC
566.6667
45.33333
FCFF (2011)
1509.167
FCFF
Terminal Value
0
1
1629.9
2 1760.292
3 1901.115
4 2053.205
5 2217.461
30748.79
6 2306.159

Total
1629.9
1760.292
1901.115
2053.205
32966.25
Total
Debt
Equity
Per share

Stand alone value of BigX

2 Change in WC
236.43
23.43
FCFF (2011)
150.82
0
1
2
3
4
5
6

1461.794
1415.908
1371.462
1328.412
19129.13
24706.71
2135
22571.71
17.03525

22.2585

167.4102
185.8253
206.2661
228.9554
254.1405
264.3061

167.4102
185.8253
206.2661
228.9554
3055.561732 3309.702
Total
Debt
Equity
Per share

148.6109
146.4342
144.2894
142.1759
1824.454
2405.964
856
1549.964
10.6162

Optimally managed value of BigX

3 Change in WC
236.43
23.43
FCFF (2011)
171.6378
0
1 190.5179
2 211.4749
3 234.7371

190.5179 169.9535
211.4749 168.2858
234.7371 166.6345

4 260.5582
5 289.2196
6 300.7884

260.5582 164.9994
3713.436716 4002.656 2261.102
Total
Debt
Equity
Per share

Value of
control per
share

2930.976
856
2074.976
14.21216

3.595967

Total value of combined firm (with and w/o synergy)

4 Change in WC
236.43
23.43
FCFF (2011)
188.6165
FCFF for
BigX
FCFF for Adamz
0
1 209.3643
1629.9
2 232.3944
1760.292
3 257.9578
1901.11536
4 286.3331
2053.204589
5 317.8298
2217.460956
6 330.543
2306.159394

Total FCFF Ter value Total

1839.264
1992.686
2159.073
2339.538
2535.291 34693.45
2636.702

1839.264
1992.686
2159.073
2339.538
37228.74
Total
(with
synergy)
Total (w/o
synergy)
Value of
synergy

5 Max. Value of BigX (to Adamz) = status quo value + value of control + value of synergy
3108.853
Debt
856
Equity
2252.853
per share
15.4305

Max. Exchange
6 ratio

0.905798

Thus, Adamz can offer max of 0.906 share of Adamz for each share of BigX.

PV
1648.086
1599.965
1553.369
1508.25
21505.89

27815.56

27637.68

177.8771