Essay
Use the Microsoft Excel model in a file folder entitled Target Valuation Model on the companion site to this book to address the following questions. The model already contains data and an estimate of Life Tech’s enterprise and equity valuations based on this data and a set of assumptions about the planning period spanning 2014 through 2018, as well as the years beyond. In answering the following questions, assume the valuation provided in this model represents the firm’s base case and reflects what the firm could do if it continued the business strategy in effect in 2012.
-Based on your answers to questions 1, 2, and 3, what do you believe are the most important value drivers for Life Tech based on their impact on the firm's enterprise and equity values? List these variables in descending order in terms of their impact on increasing the magnitude of Life Tech's enterprise and equity values.
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