Short Answer
Using the M&A Valuation & Deal Structuring Model accompanying this text:
a. On the Valuation Worksheet, note the enterprise and equity values for Newco.
b. On the Summary Worksheet under Incremental Sales Synergy, change incremental
revenue by $200 million in the first year and $250 million in the second year and
$350 in the third year.
What is the impact on Newco’s enterprise and equity values? (Hint: See Valuation Worksheet)
Close model but do not save results.
Correct Answer:

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a. Before incremental sales growth:
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