Discuss the below:
Make a model between Aetna and CVS that focuses on the following:
a) 5 year revenue forecast starting 2018
b) Model for merger using DCF methodology or LBO model with details on hurdle rate, multipliers etc. Why was a DCF chosen or LBO chosen? If this were you, would this be a friendly acquisition or hostile acquisition?
c) How funding should ideally happen (Debt/ Cash ratio)
d) Any potential risks