A contains exhibit 19 of PPR and Puma synergies forecast from Puma case. Explain what synergy is and why such forecast is essential in M&A process. Assume the analyst’s standalone valuation of Puma is 315 Euros per share. How should the analyst incorporate synergies forecast in the analysis? Assume Puma’s cost of equity and WACC is 9%.

Answer rating: 100% (QA)

Answer Synergy is the value created when two companies combine their operations and resources In the MA process a synergy forecast is essential because it takes into account the expected savings and a... View the full answer