Problem
From the case, I have prepared a valuation appraisal of Performance Coatings with reference to the financial forecasts set out in Exhibit 9. Use a DCF hybrid model for this appraisal and express the resultant as a range of Enterprise Value.
Now, I'm preparing a valuation appraisal of Performance Coatings using an adjusted model (from the DCF hybrid model) to reflect the value to a new owner. The adjustments must include:
• asset performance efficiency improvements
• once off integration expenses
• once off integration benefits
• ongoing integration net benefits
Task
What are the possible FCF adjustment in this case? and how do I determine each of the adjustment value and assumption?