Printicomm Case

Printicomm Case

Examining Merger includes Necessary Excel measuring WACC, Beta


I only need 2-3 pages (See sample attached) but added one page for the excel spreadsheets

SEE THREE ATTACHMENTS. Case attached as “Printicomm Case” My writing sample attached as “Mercury – Stierwalt” and the questions as “Questions midterm case – printicomm”

What are the pros and cons of a fixed-price deal and an earnout-based deal between Printicomm and Digitech?

Please read the Appendix, which is a memo to Jay Risher from Alan Smith. How did the analyst evaluate the earnout? Why isn�t a simple discounted-cash-flow approach sufficient for determining the cost of the earnout to Printicomm?)

Why does the value of the earnout look so different from the perspectives of Printicomm and Digitech? Will this difference in valuation be a help or hindrance to the consummation of the deal?

What terms (i.e., time length and target hurdles) should Jay Risher seek to obtain from Digitech?