Merger Model - Blank Template

Table of Contents
Control Panel
Outputs
Sensitivities
Model
Comps Data
Diluted Shares Calculation

Notes
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© Corporate Finance Institute. All rights reserved.

Inputs and Assumptions

All Amounts Denominated in US$MM Unless Otherwise Stated

Acquisition Overview Toggles and Controls (DO NOT DELETE)

Target Toggle Sensitivities Control
Acquisition Premium
% Debt Financing
Acquisition Assumptions Acquiree
Acquirer
Acquiree
Acquisition Premium

Financing Assumptions
% Debt Financing
% Equity Financing 100.0% 100.0%

Equity Financing Fees

Equity Issuance Discount (to Current Price)
Debt Financing Fees
Transaction Costs

Interest on New Debt

Term of New Debt

Target Debt Change of Control Premium

Other Assumptions
Effective Tax Rate
© Corporate Finance Institute. All rights reserved.

Model Outputs
All Amounts Denominated in US$MM Unless Otherwise Stated

Acquisition Overview
Price
Price
Acquisition Premium
Offer Price
Implied Exchange Ratio

Fully Diluted Shares Outstanding (MM)

Equity Bid Value
Net Debt Assumed
Transaction Value

Acquisition Financing
% Debt
% Equity

Sources and Uses of Cash

Sources of Cash Uses of Cash
New Equity Purchase of Target Equity
New Debt Refinance of Target Debt
Refinancing of Target Debt Debt Change-of-Control Premium
Cash-on-Hand Debt Financing Fees
Equity Financing Fees
Other Transaction Costs
Total Sources Total Uses
Accretion / Dilution Summary

Capitalization
Share Price ($/sh.)
Fully Diluted Shares Outstanding (MM)
Market Capitalization
Net Debt
Enterprise Value

Financial Forecast Summary

FY+1 Revenue
FY+2 Revenue

FY+1 EBITDA
FY+2 EBITDA

FY+1 EPS1
FY+2 EPS

FY+1 CFPS1
FY+2 CFPS

Trading and Leverage Metrics

FY+1 EV/EBITDA
FY+2 EV/EBITDA

FY+1 P/E
FY+2 P/E

FY+1 P/CF
FY+2 P/CF

FY+1 Net Debt/EBITDA

FY+2 Net Debt/EBITDA
Net Debt/EV
Total Debt/Capital

Notes:
1. Normalized amounts (i.e. excludes one-time transaction costs)
Pro Forma Change
© Corporate Finance Institute. All rights reserved.

Sensitivity Analysis
All Amounts Denominated in US$MM Unless Otherwise Stated

Target: 0

Sensitivity Analysis

Current Assumptions (Do Not Remove) Accretion/Dilution

Takeover Premium 2021
% Debt Financing EPS
Acquiree CFPS

2021 EPS Accretion/(Dilution)

2022 EPS Accretion/(Dilution)

2021 Net Debt/EBITDA

 2021 EPS Accretion: 0% Acquisition Premium; 0% Debt Financing

1200.0%

1000.0%

800.0%

600.0%

400.0%

200.0%

0.0%

2022 EPS Accretion: 0% Acquisition Premium; 0% Debt Financing

1200.0%

1000.0%

800.0%

600.0%

400.0%

200.0%

0.0%
600.0%

400.0%

200.0%

0.0%
 Financial Metrics
2022 2021 2022
Total Debt/Capital
Net Debt/EBITDA

2021 CFPS Accretion/(Dilution)

2022 CFPS Accretion/(Dilution)

Total Debt / Book Capitalization

 2021 CFPS Accretion: 0% Acquisition Premium; 0% Debt Financing

1200.0%

1000.0%

800.0%

600.0%

400.0%

200.0%

0.0%

2022 CFPS Accretion: 0% Acquisition Premium; 0% Debt Financing

1200.0%

1000.0%

800.0%

600.0%

400.0%

200.0%

0.0%
600.0%

400.0%

200.0%

0.0%
ebt Financing

ebt Financing
© Corporate Finance Institute. All rights reserved.

Merger Model Detail

All Amounts Denominated in US$MM Unless Otherwise Stated

Capitalization Summary

Share Price ($/sh.)

Basic Shares Outstanding (MM)
Diluted Shares Outstanding (MM)
Market Capitalization (Diluted)
Cash and Cash Equivalents
Total Debt
Enterprise Value (Diluted)

Acquisition Summary

Acquisition Premium
Offer Price

Share Exchange Ratio

Purchase Price
Target Debt
Target Cash and Cash Equivalents
Transaction Value
%
Debt Issued
Equity Issued

Target Debt Change of Control Premium

Debt Financing Fees
Equity Financing Fees
Other Transaction Costs
Total Transaction Costs

Goodwill and FMV of Assets

Goodwill
Purchase Price
FMV of Equity (Market Capitalization)
Goodwill Created
FMV of Total Assets
FMV of Total Liabilities
FMV of Equity
FMV of Total Assets

PP&E, Existing Goodwill and Other Intangibles

Book Value of Total Assets
Less: Book Value of PP&E, Goodwill and Other Intangibles
Book Value of Other Assets

FMV of Total Assets

Less: FMV of Other Assets
FMV of PP&E, Goodwill and Other Intangibles

Income and Cash Flow Adjustments

Incremental Depreciation
Book Value of PP&E
Book Value of Goodwill
Book Value of Other Intangible Assets
Total Book Value of PP&E, Goodwill and Other Intangibles
FMV of PP&E, Goodwill and Other Intangibles
FMV Adjustment for PP&E, Goodwill and Other Intangibles

FMV Adjustment for PP&E, Goodwill and Other Intangibles Attributed to Depreciable Property
Incremental Depreciation

Other Adjustments
Additional Interest Expense
Amortization of Debt Financing Fees

Net Earnings Adjustment (FY+1)

Incremental Depreciation
Incremental Interest
Debt Issue Cost Amortization
Transaction Costs
Target Debt Change of Control Premium
Tax Impact
Total Net Earnings Adjustment

Net Earnings Adjustment (FY+2)

Incremental Depreciation
Incremental Interest
Debt Issue Cost Amortization
Tax Impact
Total Net Earnings Adjustment

Pro Forma Balance Sheet Items

Cash and Cash Equivalents

Total Assets
Total Debt
Total Equity

Pro Forma Financial Performance

2021
Revenue
EBITDA
Net Earnings
Normalized Net Earnings
Cash Flow
Normalized Cash Flow

2022
Revenue
EBITDA
Net Earnings
Cash Flow

Share Price ($/sh.)

Diluted Shares Outstanding
Adjustments Pro Forma

Adjustments Pro Forma

© Corporate Finance Institute. All rights reserved.

Comps Financial Data

All Amounts Denominated in US$MM Unless Otherwise Stated

Financial Data

Current Capitalization
Stock Ticker
Share Price ($/sh.)
Date

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Total Debt (Balance Sheet)

Total Convertible Debt (Balance Sheet)
Total Non-Convertible Debt
Convertible Debt Outstanding (If-Converted)
Total Debt (Adjusted)

Net Debt
Cash and Cash Equivalents

Enterprise Value (Diluted)

Net Property, Plant & Equipment

Existing Goodwill
Other Intangible Assets
FMV of PP&E, Goodwill and Intangibles Attributed to Depreciable Property
FMV of PP&E, Goodwill and Intangibles Attributed to Non-Depreciable Property
Average Amortization Period (Years)

Total Assets
Total Liabilities
Total Equity
Check

Financial Estimates and Current Trading Multiples

Consensus Research Estimates
FY+1
Revenue
EBITDA
Net Earnings
Cash Flow

FY+2
Revenue
EBITDA
Net Earnings
Cash Flow

Current Trading Multiples

FY+1
EV/Revenue
EV/EBITDA
P/E
P/CF

FY+2
EV/Revenue
EV/EBITDA
P/E
P/CF

Leverage Metrics
Total Debt / Equity
Total Debt / Book Capitalization
Total Debt / Market Capitalization

Amazon 10-K Excerpt

 Acquirer: Target: 1 2 3
Amazon Walmart Twitter eBay

AMZN WMT TWTR EBAY

$3,146.14 $131.37 $77.63 $58.48
3/1/2021 3/1/2021 3/1/2021 3/1/2021

503 2,831 796 684

15 29 40 25
0 0 1 0
0 0 44 0
518 2,860 882 709

$1,630,330 $375,758 $68,436 $41,462

$99,349 $68,478 $4,484 $8,315

$0 $0 $2,794 $0
$99,349 $68,478 $1,690 $8,315
$0 $0 $954 $0
$99,349 $68,478 $2,644 $8,315

$57,227 $54,153 $656 $6,887

$42,122 $14,325 $1,988 $1,428

$1,687,557 $429,911 $69,092 $48,349

$150,667 $124,289 $2,424 $1,867

$15,017 $30,236 $1,312 $4,675
$6,476 $0 $58 $12
78.0% 74.0% 64.4% 54.9%
22.0% 26.0% 35.6% 45.1%
16 Years 26 Years 4 Years 5 Years

$321,195 $250,863 $13,379 $19,310

$227,791 $163,359 $5,409 $15,749
$93,404 $87,504 $7,970 $3,561
$0 $0 $0 $0
$472,903 $549,417 $4,811 $11,917
$72,596 $34,222 $1,461 $4,204
$24,841 $15,512 $196 $2,285
$75,874 $25,225 $1,372 $3,366

$557,294 $565,010 $5,850 $12,740

$90,110 $35,790 $1,880 $4,596
$35,107 $16,440 $406 $2,605
$96,321 $29,486 $1,640 $3,308

3.6x 0.8x 14.4x 4.1x

23.2x 12.6x 47.3x 11.5x
65.6x 24.2x 349.2x 18.1x
21.5x 14.9x 49.9x 12.3x

3.0x 0.8x 11.8x 3.8x

18.7x 12.0x 36.8x 10.5x
46.4x 22.9x 168.6x 15.9x
16.9x 12.7x 41.7x 12.5x

1.1x 0.8x 0.3x 2.3x

51.5% 43.9% 24.9% 70.0%
5.7% 15.4% 3.7% 16.7%
 4 5 6 7
Snap Inc. Expedia Alphabet Facebook

SNAP EXPE GOOGL FB

$66.67 $161.24 $2,069.66 $264.91
3/1/2021 3/1/2021 3/1/2021 3/1/2021

232 138 675 2,849

131 5 19 97
5 3 0 0
91 0 0 0
458 146 695 2,946

$30,567 $23,598 $1,437,401 $780,354

$2,004 $8,855 $27,872 $11,177

$892 $0 $0 $0
$1,112 $8,855 $27,872 $11,177
$0 $0 $0 $0
$1,112 $8,855 $27,872 $11,177

$566 $5,492 $1,407 -$6,399

$546 $3,363 $26,465 $17,576

$31,134 $29,090 $1,438,808 $773,955

$448 $2,831 $96,960 $54,981

$939 $7,380 $21,175 $19,050
$106 $1,515 $1,445 $623
22.8% 39.6% 63.3% 60.5%
77.2% 60.4% 36.7% 39.5%
8 Years 12 Years 11 Years 12 Years

$5,024 $18,690 $319,616 $159,316

$2,694 $14,664 $97,072 $31,026
$2,330 $4,026 $222,544 $128,290
$0 $0 $0 $0
$3,828 $7,440 $225,493 $107,641
$343 $968 $83,040 $54,306
-$781 -$519 $47,115 $32,704
$344 $2,460 $68,965 $37,624

$5,537 $10,386 $263,227 $128,587

$1,090 $2,099 $97,895 $65,212
-$228 $399 $54,859 $39,219
$965 $1,534 $77,886 $42,996

8.1x 3.9x 6.4x 7.2x

90.8x 30.1x 17.3x 14.3x
-39.1x -45.5x 30.5x 23.9x
89.0x 9.6x 20.8x 20.7x

5.6x 2.8x 5.5x 6.0x

28.6x 13.9x 14.7x 11.9x
-134.1x 59.1x 26.2x 19.9x
31.7x 15.4x 18.5x 18.1x

0.5x 2.2x 0.1x 0.1x

32.3% 68.7% 11.1% 8.0%
3.5% 27.3% 1.9% 1.4%
© Corporate Finance Institute. All rights reserved.

Diluted Shares Calculation

All Amounts Denominated in US$MM Unless Otherwise Stated

Amazon's Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule

Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
0.0
0.0
0.0
0.0
0.0
Total 0.0

In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

Restricted Stock Units

Total
Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]

Total

Total Converted
Total Unconverted

Walmart's Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule

Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
0.0
0.0
0.0
0.0
0.0
Total 0.0

In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

Restricted Stock and Performance Share Units

Restricted Stock Units

Total

Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]

Total

Total Converted
Total Unconverted

Twitter's Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule

Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
Stock Options 1.4 $18.87 1.4
0.0
0.0
0.0
0.0
Total 1.4

In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

Performance Restricted Stock Units

TSR Restricted Stock Units
Restricted Stock Units
Restricted Common Stock
Total

Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]
Convertible Notes (2021) $954 $77.64
Convertible Notes (2024) $1,150 $57.14
Convertible Notes (2025) $1,000 $41.50

Total

Total Converted
Total Unconverted

eBay's Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule
Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
0.0
0.0
0.0
0.0
0.0
Total 0.0

In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

Restricted Stock Units

Total

Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]

Total

Total Converted
Total Unconverted

Snap Inc.'s Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule

Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
Stock Options 5.6 $10.37 5.6
0.0
0.0
0.0
0.0
Total 5.6

In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

RSUs and RSAs

Total

Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]
Convertible Notes (2025) $1,000 $28.18
Convertible Notes (2026) $1,265 $22.81

Total
Total Converted
Total Unconverted

Expedia's Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule

Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
Stock Options 8.7 $105.75 8.7
0.0
0.0
0.0
0.0
Total 8.7

In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

Restricted Stock Units

Total
Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]

Total

Total Converted
Total Unconverted

Alphabet's Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule

Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
0.0
0.0
0.0
0.0
0.0
Total 0.0

In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

Restricted Stock Units

Total

Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]

Total

Total Converted
Total Unconverted

Facebook's Diluted Shares

Share Price ($/sh.)

Shares Outstanding
Basic Shares Outstanding (MM)
Dilution From Unvested RSUs/RSAs (MM)
Dilution From Equity Instruments (TSM) (MM)
Dilution From Convertible Debt (MM)
Diluted Shares Outstanding (TSM) (MM)

Market Capitalization (Diluted)

Options and Dilutive Securities Schedule

Number Exercise Number
Type Outstanding Price Converted
[MM] [$/sh.] [MM]
0.0
0.0
0.0
0.0
0.0
Total 0.0
In-the-Money Options
Shares Repurchased (TSM)
Additional Shares Issued (TSM)

Restricted Stock Units / Restricted Stock Awards

Type

Restricted Stock Units

Total

Convertible Debt
Face Conversion
Details Value Price
[MM] [$/sh.]

Total

Total Converted
Total Unconverted
 $3,146.14

503.0
15.2
0.0
0.0
518.2

$1,630,330

Proceeds
[$MM]
$0
$0
$0
$0
$0
$0

0.0
0.0
0.0

Unvested
Number
Outstanding
[MM]
15.2

15.2
 Shares
Issued
[MM]
0.0
0.0
0.0
0.0
0.0

$0
$0

$131.37

2,831.0
29.3
0.0
0.0
2,860.3

$375,758

Proceeds
[$MM]
$0
$0
$0
$0
$0
$0

0.0
0.0
0.0

Unvested
 Number
Outstanding
[MM]
6.0
23.3

29.3

Shares
Issued
[MM]
0.0
0.0
0.0
0.0
0.0

$0
$0

$77.63

796.0
40.3
1.1
44.2
881.6

$68,436

Proceeds
[$MM]
$27
$0
$0
$0
$0
 $27

1.4
0.3
1.1

Unvested
Number
Outstanding
[MM]
0.7
0.9
36.6
2.0
40.3

Shares
Issued
[MM]
0.0
20.1
24.1
0.0
44.2

$2,150
$954

$58.48

684.0
25.0
0.0
0.0
709.0

$41,462
 Proceeds
[$MM]
$0
$0
$0
$0
$0
$0

0.0
0.0
0.0

Unvested
Number
Outstanding
[MM]
25.0

25.0

Shares
Issued
[MM]
0.0
0.0
0.0
0.0
0.0

$0
$0

$66.67
 231.6
131.2
4.7
90.9
458.5

$30,567

Proceeds
[$MM]
$58
$0
$0
$0
$0
$58

5.6
0.9
4.7

Unvested
Number
Outstanding
[MM]
131.2

131.2

Shares
Issued
[MM]
35.5
55.5
0.0
0.0
90.9
 $2,265
$0

$161.24

138.1
5.3
3.0
0.0
146.4

$23,598

Proceeds
[$MM]
$920
$0
$0
$0
$0
$920

8.7
5.7
3.0

Unvested
Number
Outstanding
[MM]
5.3

5.3
 Shares
Issued
[MM]
0.0
0.0
0.0
0.0
0.0

$0
$0

$2,069.66

675.2
19.3
0.0
0.0
694.5

$1,437,401

Proceeds
[$MM]
$0
$0
$0
$0
$0
$0

0.0
0.0
0.0

Unvested
Number
Outstanding
[MM]
19.3

19.3

Shares
Issued
[MM]
0.0
0.0
0.0
0.0
0.0

$0
$0

$264.91

2,849.0
96.7
0.0
0.0
2,945.7

$780,354

Proceeds
[$MM]
$0
$0
$0
$0
$0
$0
 0.0
0.0
0.0

Unvested
Number
Outstanding
[MM]
96.7

96.7

Shares
Issued
[MM]
0.0
0.0
0.0
0.0
0.0

$0
$0