Parent company: Johnson & Johnson
Target company: Baxter
The goal of this week is to provide a summary of the performance tests, provide exhibits, and suggest a purchase price for our target company. Therefore we will need to provide the exhibits, in tasks 1 and 2 below.
Suggested breakdown of tasks:
1. Calculate value of Baxter’s operations and weighted average cost of capital.
2. Calculate Baxter’s intrinsic value, book value, and market value
3. Determine the synergies and opportunities involved in the acquisition. (2 team members)
4. Deliverable manager: Based on above info, have team suggest a price for Baxter. List out reasons to support price and combine all portions.