Gulf Aviation generates $800 million in revenue per year, with no material growth. The consolidated revenues for
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1, $1.8 billion in year 2 (the year of the acquisition), and $2.5 billion in year 3. If DefenseCo closed the acquisition of Gulf Aviation on October 1 of year 2, what is the apples-to-apples organic growth for DefenseCo in year
2 and year 3? How does organic growth differ from the growth in reported revenues? Assume Gulf Aviation revenues are consolidated into DefenseCo only after the acquisition close date and that the fiscal year closes for both companies on December 31 of each year.
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Valuation Measuring and managing the values of companies
ISBN: ?978-0470424704
5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
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