The situation
A fictional Indian acquirer agrees ₹300 crore enterprise value. Agreed net debt is ₹52 crore and closing working capital is ₹5 crore below the peg. The integration requires ₹12 crore cash at closing and is expected to deliver ₹8 crore next year and ₹10 crore the year after. Use 10% to discount the integration cash flows.
1. Work out the numbers
What is the approximate incremental integration NPV?
2. Make the decision
What equity consideration follows from the closing bridge?
Complete the calculation above to unlock this decision.