In case you missed it, or in case you wanted to watch it again, here is our live webinar from this week. In this webinar, CEO David Trainer will show the right way to analyze the Time Warner Cable and Charter Communications deal and determine whether or not an acquisition creates value.
Downloads
M&A Impact Analysis Charter & Time WarnerContains the model used in the webinar.
1 Response to "Weekly Webinar 5/27: A Forensic Analysis of Acquisitions"
There is a significant spread between CHTR’s announcement of the value of TWC in its press release and the enterprise value of TWC you provide in the webinar.
With equity of ~$55.3B and Debt of ~$23.4B, they announce a $78.7B value in their press release (other components in the standard EV equation being negligible). Yet, you state an enterprise value of $93B in your webinar. The spread seems to come primarily from two components in your definition of EV : 1) adjustments to the book value of debt and 2) net DTLs. It’s a pretty significant spread and makes me wonder why CHTR didn’t include these additional obligations in its deal valuation.