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.
DCF Valuation Models
Appendix 14A Draft of Dell Valuation on Basis of Appendix 14C
Appendix 14B Final Generic Form of Corp Val in MA DCF Model the Steps Only
Appendix 14C Final Spreadsheet Only Form of CVM&A Seven -Step DCF Model
Excel Sheets Implementing DCF Models
[001] Excel Sheet Step 1 Sub-Step 1A Sheet 1 of 3 FCFS for Year 1 2023.12.13
[002] Excel Sheet Step 1 Sub-Step 1A Sheet 2 of 3 FCFS for Year 2 2023.12.13
[003] Excel Sheet Step 1 Sub-Step 1A Sheet 3 of 3 CAGR in FCFS in the Historic Period
[004] Excel Sheet Step 1 Sub-Step 1B Sheet 1 of 1 FCFS at CAGR in the 5-Year Projection Period
[005] Excel Sheet Step 1 Sub-Step 1C Sheet 1 of 1 Computing Target's TV
[006] Excel Sheet Step 2 Sub-Step 2A Sheet 1 of 3 Risk Free Rate
[007] Excel Sheet Step 2 Sub-Step 1A Sheet 2 of 3 ERonME 10%
[008] Excel Sheet Step 2 Sub-Step 2A Sheet 3 of 3 Equity Risk Premium (ERM) 6%
[009] Excel Sheet Step 2 Sub-Step 2B Sheet 1 of 1 Beta from Yahoo Finance
[010] Excel Sheet Step 2 Sub-Step 2C Sheet 1 of 1 Determine Target's EQ DIS Rate (EDR)
[011] Excel Sheet Step 2 Sub-Step 2D Sheet 1 of 2 Target's Pre-Tax Cost of Debt
[012] Excel Sheet Step 2 Sub-Step 2D Sheet 2 of 2 Cost of Target's Preferred Stock
[013] Excel Sheet Step 2 Sub-Step 1E Sheet 1 of 5 After-Tax Cost of Debt
[014] Excel Sheet 2 Sub-Step 2E Sheet 2 of 5 Percentage of TC's Capital Rep by Debt
[015] Excel Sheet Step 2 Sub-Step 2E Sheet 3 of 5 Determine TC's EQ DIS Rate (EDR), Also 2C 1 of 1
[017] Excel Sheet Step 2 Sub-Step 2E Sheet 5 of 5 AC's WACC Table, Hypo
[018] Excel Sheet Step 2 Sub-Step 2E Sheet 5 of 5 AC's WACC Table, Real Target Form
[019] Excel Sheet Step 3 Long Form Sheet 1 of 1 Computing PVs of Target's FCFs and TV Final Version
[020] Excel Sheet Step 4 Long Form Sheet 1 of 1 Computing the Total FMV of TCs FCFs and TV Final
[021] Excel Sheet Step 5 Long Form Sheet 1 of 1 Computing Net FMV by Deducting Target's LIAB
[022] Excel Sheet Step 6A Sheet 1 of 1 Valuing Non-Core Assets
[023] Excel Sheet Step 6B Sheet 1 of 1 Determining Target NFMV, Core, Non, Core assets
[024] Excel Sheet Step 7 Sub-Step 7A Sheet 1 of 1 Allocation of Purchase Price
[025] Excel Sheet Step 7 Sub-Step 7B Sheet 1 of 1 Sensitivity Analysis
Valuation Documents Relating to AOL, Aruba, Clearwire, RAI, and Twitter
Selected Principal Valuation Documents discussed in Corporate Valuation in M&A, Samuel C. Thompson, Jr.
AOL
AOL Doc 1, 2015.05.12 Press Release Announcing the Deal
AOL Doc 2, 2015.05.11 Allen & Company, Inves Banker for AOL Opinion NOT AVAILABLE
AOL Doc 3, 2015.05.12 Excerpt fr 14d-9, Re Allen Op and Related Matters
AOL Doc 4, 2017.01.11 Fischel Expert Report for AOL
AOL Doc 5, 2017.02.16 Cornell Expert Revised Report for Dissenters
AOL Doc 5, 2017.02.16 Cornell Expert Revised Report for Dissenters
AOL Doc 7, 2018.08.15 Vice Ch Glasscock’s Second Decision
Aruba
Aruba Doc 10, 2018.02.27 Second Ch Ct Dec Laster
Aruba Doc 11, 2019.03.27 Del SC Chief Justice Strine
Aruba Doc 1, 2015.03.02 Press Release Announcing the Deal
Aruba Doc 2, 2015.03.2, Qatalyst Partners IB for Aruba but no Val Opinion,
Aruba Doc 2A 2015.04.03 Excerpts from Proxy Statement
Aruba Doc 3 2016.07.29 Marcus Expert Report Corrected for Dissenting Shareholders
Aruba Doc 4 2016.07.29 Marcus Expert Report Exhibits 1 et cet
Aruba Doc 5 2016.07.29 Dages Expert Report for Aruba
Aruba Doc 6, 2016.09.02 Marcus Rebuttal Report for Dissenting Shareholders
Aruba Doc 7, 2016.09.02 Marcus Rebuttal Report Appendix A et seq
Aruba Doc 8, 2016.09.02, Dages Expert Report Rebuttal for Aruba
Aruba Doc 9, 2018.02.15 First Del Chancery Ct Dec, Laster
Clearwire
Clearwire Doc 1, 2012.12.17 Press Release Announcing the Deal
Clearwire Doc 2, 2012.12.16 Centerview Presen to CW's Spec Comm
Clearwire Doc 3 2012.02.16 Evercore Presentation to Clearwires BofD
Clearwire Doc 4, 2013.04.23 Excerpts from Proxy Statement
Clearwire Doc 5 2015.09.25 Expert Report Jarrell for Shs
Clearwire Doc 6 2015.09.25, Expert Report Cornell for Clearwire
Clearwire Doc 7, 2015.10.23, Jarrell's Rebuttal Report
Clearwire Doc 8, 2017.02.21 Ch Ct Laster Affd SC 2018.04.23
Dell
Dell Doc 1, 2013.02.05 Press Release Announcing the Deal
Dell Doc 2, 2013.08.02 JP Morgan Final BD Presentation FINAL
Dell Doc 3, 2013.08.02 Evercore's Final Presentation to Special Comm
Dell Doc 4, 2013.08.14 & 05.30 Excerpts Re Deal & Val fr Prox, Proxy Supp & Related Docs
Dell Doc 5, 2015.09.29 Hubbard Revised Val Report for Dell
Dell Doc 6, 2015.09.27 Cornell Revised (Rebuttal) Val Report for Shareholders
Dell Doc 7, 2016.05.31 Del Ch Ct Dec LEXIS
Dell Doc 8, 2017.12.14 Del SC Decision
RAI
RAI Doc 1, 2017.01.17 RAI Press Release Announcing the Deal
RAI Doc 15, 2019.04.19 Expert Depo Gompers for RAI Transcript FULL
RAI Doc 16, 2019.04.19 Expert Depo of Shivdasani for RAI
RAI Doc 17, 2020.04.27 RAI Appraisal Dec NCBC
RAI Doc 18, 2020.09.21 Appellant Brief of Dissenting Shs at NC SC
RAI Doc 19 2020.11.16 Appellee Brief for RAI at NC SC
RAI Doc 20 2020.12.14 Appellant Brief Reply of Dissenting SHs at NC SC
RAI Doc 21, 2021.12.17 North Carolina Supreme Court Decision
RAI Doc 2, 2017.01.16 Goldman Valuation Report
RAI Doc 3, 2017.01.16 JP Morgan's Valuation Report
RAI Doc 3, 2017.01.16 JP Morgan's Valuation Report
RAI Doc 5, 2017.06.14 Excerpt from Proxy Statement re Valuations
RAI Doc 6 to 14, 2019.02.22, and 03.22 Expert Reports and Rebuttals Needed