This page contains documents that supplement Professor Sam Thompson's book Corporate Valuation in M&A, published by PLI in December 2023. The first set of documents are:

  • APPENDIX 14A, DELL, INC. FORM OF CORPORATE VALUATION IN M&A SEVEN-STEP DCF MODEL, AS OF FEBRUARY __, 2024, THE CLOSE OF DELL’S FIRST FISCAL YEAR ENDING IMMEDIATELY AFTER THE PUBLICATION OF THIS BOOK IN DECEMBER 2023;
  • APPENDIX 14B, GENERIC FORM OF CORPORATE VALUATION IN M&A SEVEN-STEP DCF MODEL; AND
  • APPENDIX 14C, SPREADSHEET-ONLY FORM OF CORPORATE VALUATION IN M&A SEVEN-STEP DCF MODEL.

These Appendices 14A, 14B and 14C implement a Discounted Cash Flow (DCF) Model discussed in the book. Appendix 14A applies the Model to the valuation of Dell. This document will be available shortly after Dell releases its financials for its fiscal year ending in February 2024. Appendix 14B is a discussion of the Model, and Appendix 14C provides a guide for implementing the Model through the attached Excel Spread Sheets that run from [001] through [025]. After the above Appendices and Excel Spread Sheets, several documents are set out relating to the valuation of the following Six firms, each of which was acquired in a recent M&A transaction that is discussed in the book: AOL, Aruba, Clearwire, Dell, RAI, and Twitter.

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DCF Valuation Models

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Appendix 14A Draft of Dell Valuation on Basis of Appendix 14C

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Appendix 14B Final Generic Form of Corp Val in MA DCF Model the Steps Only

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Appendix 14C Final Spreadsheet Only Form of CVM&A Seven -Step DCF Model

Excel Sheets Implementing DCF Models

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[001] Excel Sheet Step 1 Sub-Step 1A Sheet 1 of 3 FCFS for Year 1 2023.12.13

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[002] Excel Sheet Step 1 Sub-Step 1A Sheet 2 of 3 FCFS for Year 2 2023.12.13

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[003] Excel Sheet Step 1 Sub-Step 1A Sheet 3 of 3 CAGR in FCFS in the Historic Period

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[004] Excel Sheet Step 1 Sub-Step 1B Sheet 1 of 1 FCFS at CAGR in the 5-Year Projection Period

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[005] Excel Sheet Step 1 Sub-Step 1C Sheet 1 of 1 Computing Target's TV

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[006] Excel Sheet Step 2 Sub-Step 2A Sheet 1 of 3 Risk Free Rate

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[007] Excel Sheet Step 2 Sub-Step 1A Sheet 2 of 3 ERonME 10%

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[008] Excel Sheet Step 2 Sub-Step 2A Sheet 3 of 3 Equity Risk Premium (ERM) 6%

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[009] Excel Sheet Step 2 Sub-Step 2B Sheet 1 of 1 Beta from Yahoo Finance

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[010] Excel Sheet Step 2 Sub-Step 2C Sheet 1 of 1 Determine Target's EQ DIS Rate (EDR)

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[011] Excel Sheet Step 2 Sub-Step 2D Sheet 1 of 2 Target's Pre-Tax Cost of Debt

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[012] Excel Sheet Step 2 Sub-Step 2D Sheet 2 of 2 Cost of Target's Preferred Stock

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[013] Excel Sheet Step 2 Sub-Step 1E Sheet 1 of 5 After-Tax Cost of Debt

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[014] Excel Sheet 2 Sub-Step 2E Sheet 2 of 5 Percentage of TC's Capital Rep by Debt

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[015] Excel Sheet Step 2 Sub-Step 2E Sheet 3 of 5 Determine TC's EQ DIS Rate (EDR), Also 2C 1 of 1

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[016] Excel Sheet Step 2 Sub-Step 2E Sheet 4 of 5 Percentage of TC's Capital Represented by Common Stock

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[017] Excel Sheet Step 2 Sub-Step 2E Sheet 5 of 5 AC's WACC Table, Hypo

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[018] Excel Sheet Step 2 Sub-Step 2E Sheet 5 of 5 AC's WACC Table, Real Target Form

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[019] Excel Sheet Step 3 Long Form Sheet 1 of 1 Computing PVs of Target's FCFs and TV Final Version

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[020] Excel Sheet Step 4 Long Form Sheet 1 of 1 Computing the Total FMV of TCs FCFs and TV Final

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[021] Excel Sheet Step 5 Long Form Sheet 1 of 1 Computing Net FMV by Deducting Target's LIAB

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[022] Excel Sheet Step 6A Sheet 1 of 1 Valuing Non-Core Assets

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[023] Excel Sheet Step 6B Sheet 1 of 1 Determining Target NFMV, Core, Non, Core assets

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[024] Excel Sheet Step 7 Sub-Step 7A Sheet 1 of 1 Allocation of Purchase Price

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[025] Excel Sheet Step 7 Sub-Step 7B Sheet 1 of 1 Sensitivity Analysis

Valuation Documents Relating to AOL, Aruba, Clearwire, RAI, and Twitter

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Selected Principal Valuation Documents discussed in Corporate Valuation in M&A, Samuel C. Thompson, Jr.

AOL

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AOL Doc 1, 2015.05.12 Press Release Announcing the Deal

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AOL Doc 2, 2015.05.11 Allen & Company, Inves Banker for AOL Opinion NOT AVAILABLE

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AOL Doc 3, 2015.05.12 Excerpt fr 14d-9, Re Allen Op and Related Matters

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AOL Doc 4, 2017.01.11 Fischel Expert Report for AOL

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AOL Doc 5, 2017.02.16 Cornell Expert Revised Report for Dissenters

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AOL Doc 5, 2017.02.16 Cornell Expert Revised Report for Dissenters

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AOL Doc 7, 2018.08.15 Vice Ch Glasscock’s Second Decision

Aruba

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Aruba Doc 10, 2018.02.27 Second Ch Ct Dec Laster

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Aruba Doc 11, 2019.03.27 Del SC Chief Justice Strine

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Aruba Doc 1, 2015.03.02 Press Release Announcing the Deal

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Aruba Doc 2, 2015.03.2, Qatalyst Partners IB for Aruba but no Val Opinion,

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Aruba Doc 2A 2015.04.03 Excerpts from Proxy Statement

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Aruba Doc 3 2016.07.29 Marcus Expert Report Corrected for Dissenting Shareholders

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Aruba Doc 4 2016.07.29 Marcus Expert Report Exhibits 1 et cet

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Aruba Doc 5 2016.07.29 Dages Expert Report for Aruba

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Aruba Doc 6, 2016.09.02 Marcus Rebuttal Report for Dissenting Shareholders

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Aruba Doc 7, 2016.09.02 Marcus Rebuttal Report Appendix A et seq

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Aruba Doc 8, 2016.09.02, Dages Expert Report Rebuttal for Aruba

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Aruba Doc 9, 2018.02.15 First Del Chancery Ct Dec, Laster

Clearwire

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Clearwire Doc 1, 2012.12.17 Press Release Announcing the Deal

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Clearwire Doc 2, 2012.12.16 Centerview Presen to CW's Spec Comm

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Clearwire Doc 3 2012.02.16 Evercore Presentation to Clearwires BofD

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Clearwire Doc 4, 2013.04.23 Excerpts from Proxy Statement

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Clearwire Doc 5 2015.09.25 Expert Report Jarrell for Shs

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Clearwire Doc 6 2015.09.25, Expert Report Cornell for Clearwire

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Clearwire Doc 7, 2015.10.23, Jarrell's Rebuttal Report

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Clearwire Doc 8, 2017.02.21 Ch Ct Laster Affd SC 2018.04.23

Dell

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Dell Doc 1, 2013.02.05 Press Release Announcing the Deal

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Dell Doc 2, 2013.08.02 JP Morgan Final BD Presentation FINAL

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Dell Doc 3, 2013.08.02 Evercore's Final Presentation to Special Comm

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Dell Doc 4, 2013.08.14 & 05.30 Excerpts Re Deal & Val fr Prox, Proxy Supp & Related Docs

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Dell Doc 5, 2015.09.29 Hubbard Revised Val Report for Dell

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Dell Doc 6, 2015.09.27 Cornell Revised (Rebuttal) Val Report for Shareholders

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Dell Doc 7, 2016.05.31 Del Ch Ct Dec LEXIS

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Dell Doc 8, 2017.12.14 Del SC Decision

RAI

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RAI Doc 1, 2017.01.17 RAI Press Release Announcing the Deal

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RAI Doc 15, 2019.04.19 Expert Depo Gompers for RAI Transcript FULL

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RAI Doc 16, 2019.04.19 Expert Depo of Shivdasani for RAI

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RAI Doc 17, 2020.04.27 RAI Appraisal Dec NCBC

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RAI Doc 18, 2020.09.21 Appellant Brief of Dissenting Shs at NC SC

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RAI Doc 19 2020.11.16 Appellee Brief for RAI at NC SC

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RAI Doc 20 2020.12.14 Appellant Brief Reply of Dissenting SHs at NC SC

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RAI Doc 21, 2021.12.17 North Carolina Supreme Court Decision

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RAI Doc 2, 2017.01.16 Goldman Valuation Report

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RAI Doc 3, 2017.01.16 JP Morgan's Valuation Report

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RAI Doc 3, 2017.01.16 JP Morgan's Valuation Report

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RAI Doc 5, 2017.06.14 Excerpt from Proxy Statement re Valuations

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RAI Doc 6 to 14, 2019.02.22, and 03.22 Expert Reports and Rebuttals Needed

Twitter

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Appendix 11H of Mergers Acquisitions and Tender Offers (MATO) and Appendix 1J of Corporate Valuation in M&A (CORP VAL): SEC and Regulated Documents Regarding the Proposed Acquisition in 2022 of Twitter, Inc. by Affiliates of Elon R. Musk, Samuel C. Thompson Jr.