File Instructions:

File Instructions:
Insturctions for Developing Consolidation Model:
Insturctions for Developing Consolidation Model:
1) Enter the Transaction Assumptions including information for the Goodwill calculation
1) Enter the Transaction Assumptions including information for the Goodwill calculation
2) Assure that the Sources of Funds equal the uses of funds and that the Pro-forma balance
2) Assure that the Sources of Funds equal the uses of funds and that the Pro-forma balance
sheet balances.
sheet balances.
3) Work throught the debt issues and the debt retirements.
3) Work throught the debt issues and the debt retirements.
4) Check the Consolidated financials.
4) Check the Consolidated financials.

Menu of Worksheets Checks

1 Transaction Assumptions Sources and Uses

2 Sources and Uses Pro-forma Balance Sheet
3 Goodwill
4 Pro Forma Balance Sheet
5 Debt Issues
6 Synergies
7 Acquirer Model
8 Target Model
9 Consolidation Model
10 Charts
r the Goodwill calculation
or the Goodwill calculation
d that the Pro-forma balance
nd that the Pro-forma balance

S&U OK
Balance Sheet Pro Forma OK
General Acquirer Debt Retired
Target Company Name Target Name Retire Total Target Debt
Acquirer Company Name Acquirer Name Retire Total Acquirer Debt
Scenario Name
Transaction Date 1/1/1997 Balance Sheet Re-Valuation
Transaction Financing Asset Write-ups
Purchase Price Liability Write-ups
Equity Value - Cash Consideration -
Equity Value - Consideration in Shares -
Target Debt Value -
Target Enterprise Value -
Transactions and Synergie
Shares Issued Transaction Costs
Number of Shares - Debt Issue Costs
Stock Price of Shares -
Value of Shares Issued - Revenue Increases
Debt Issued Expense Reductions
Issue 1 Capital Expenditure Reduct
Amount of Debt - On-Going Assumptions
Interest Rate 0% Tax Rate
Term - Depreciation Rate on Write-
Interest Rate on Revolver
Issue 2 Interest Income Rate
Amount of Debt - Dividend Per-Share
Interest Rate 0% Graphs
Term - Years on Graph
Acquirer Debt Retired
Retire Total Target Debt 0 Model Checks
Retire Total Acquirer Debt 0 S&U OK
Pro Forma OK
Balance Sheet Re-Valuation
Asset Write-ups 0
Liability Write-ups 0

Amount of Debt 0
Interest Rate 0%
Term 0
Transactions and Synergies
Transaction Costs 0
Debt Issue Costs 0

Revenue Increases 0
Expense Reductions 0
Capital Expenditure Reductions 0
On-Going Assumptions
Tax Rate 0%
Depreciation Rate on Write-up 0%
Interest Rate on Revolver 0%
Interest Income Rate 0%
Dividend Per-Share 0

Years on Graph 9
 Sources and Uses of Funds for Acquisition of Target Name

Amount
1996
Uses

Target Equity - Cash -

Target Equity - Shares -
Target Debt Retired
Transaction Fees -
Acquirer Debt
Working Capital
Debt Issue Costs -
Total Uses -

Sources

New Shares Issued -

New Debt Issued - 1 -
New Debt Issued - 2 -
New Preferred Issued
Cash Used
Total Sources -

Check -
Shares
1996

-
Goodwill Calculation 1996

Step 1: Equity Purchase Price vs Book Value

Equity Purchase Price -

Less: Book Value -
Net -

Step 2: Add Transaction Costs -

Step 3: Less Asset Write-ups

Net -

Step 4: Add Liability Write-Ups

Net -

Step 5: Total Goodwill -

Transaction Date 1996 1996

Acquirer Target Debt Debt Cash Asset

Assets Name Name Issue Retired Changes Write-up

Restricted Cash
Cash and Temporary Investments -
Other Current Assets
Gross Plant Value
Accumulated Depreciation
Net Plant
Other Investments
Deferred Debits and Goodwill
Total Assets - - - - - -

Liabilities and Capital

Current Liabilities
Short-term Debt
Existing and Input Debt - -
Other Liabilities and Deferred Credits
Deferred Taxes
Minority Interest
Common Equity Balance
Total Liabilities and Capital - - - - - -

Shares
 Eliminate New Adjusted
Target Equity Balance
Goodwill Equity Issues Total Adj Sheet

- -
- -
- -
- -
- -
- -
- -
- - -
- - - - -

- -
- -
- -
- -
- -
- -
- - - -
- - - - -
Check 1
- -
Total Debt Issues 1996 1997 1998 1999 2000

Beginning Balance - - - - -
New Issues - - - - -
Debt Maturities - - - - -
Ending Balance - - - - -
Interest Expense - - - - -

Target Existing Debt

Beginning Balance
New Issues
Debt Maturities
Ending Balance
Interest Expense

Acquirer Existing Debt

Beginning Balance
New Issues
Debt Maturities
Ending Balance
Interest Expense

New Debt Issued - 1

Beginning Balance - - - - -
New Issues - - - - -
Debt Maturities - - - - -
Ending Balance - - - - -
Interest Expense - - - - -

New Debt Issued - 2

Beginning Balance - - - - -
New Issues - - - - -
Debt Maturities - - - - -
Ending Balance - - - - -
Interest Expense - - - - -

Debt Retired - 1
Beginning Balance - - - - -
New Issues - - - - -
Debt Maturities
Ending Balance - - - - -
Interest Expense - - - - -
Debt Retired - 2
Beginning Balance - - - - -
New Issues - - - - -
Debt Maturities
Ending Balance - - - - -
Interest Expense - - - - -
2001 2002 2003 2004 2005 2006 2007 2008

- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -

- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -

- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -

- - - - - - - -
- - - - - - - -

- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -

- - - - - - - -
- - - - - - - -
 1997 1998 1999 2000

Revenue Increases - - - -

Expense Reductions - - - -

Capital Expenditure Reductions - - - -

2001 2002 2003 2004 2005 2006 2007 2008

- - - - - - - -

- - - - - - - -

- - - - - - - -
Year 1996 1997 1998 1999

Assumptions

Interest Rate on Revolver 0.0% 0.0% 0.0%

Interest Rate on Cash Balance 0.0% 0.0% 0.0%
Income Tax Rate 0.0% 0.0% 0.0%
Dividend Per Share - - -

Income Statement
Revenues
Target Target Name
Acquirer
Synergies - - -
Total - - -
Operating Expenses
Target
Acquirer
Synergies - - -
Total - - -
EBITDA - - -
Depreciation
Target
Acquirer
Asset Write-up - - -
Total Depreciation - - -
EBIT - - -
Other Income
Target
Acquirer
Interest Expense
Existing Interest - - -
Interest Expense on Revolver - - -
Interest Income on Cash Balance - - -
Net Interest Expense - - -
EBT - - -
Taxes - - -
Goodwill Writeoff
Net Income - - -
Cash Flow
Net Income - - -
Depreciation and Goodwill - - -
Working Capital Change - - -
Operating Cash Flow - - -
Capital Expenditures
Target
Acquiror
Synergies - - -
Total Capital Expenditure - - -
Cash Before Financing - - -
New Debt Issues - - -
New Equity Issues
Debt Repayments - - -
Dividends - - -
Cash After Dividends - - -

Balance Sheet
Assets
Cash and Temporary Securities - - - -
Current Assets
Target
Acquiror
Total Current Assets - - - -
Gross Plant - - - -
Accumulated Depreciation - - - -
Net Plant - - - -
Other Assets - - - -
Goodwill - - - -
Total Assets - - - -

Liabilities and Capital

Current Liabilities
Target
Acquiror
Total Current Liabilities - - - -
Debt Balance
Existing Debt - - - -
Revolver - - - -
 Total Debt - - - -
Other Liabilities - - - -
Minority Interest - - - -
Beginning Equity - - -
Add: Net Income - - -
Add: Equity Issues - - -
Less: Dividends - - -
Ending Equity - - - -
Liabilities and Capital - - - -

Assets less Liabilities - - - -

Total Trade Working Capital - - - -

Change in Working Capital - - -

Net Revolver Balance

Beginning Cash Less Short Term - - -
Add Cash Flow - - -
Ending Revolver and Cash Balance - - - -

Cash Balance - - -
Revolver Balance - - -

Cash Interest Income - - -

Revolver Intersest Expense - - -

Shares
Beginning Shares - - -
New Shares
Ending Shares - - - -

Consolidated
EPS - - -
EBIT/Interest - - -
Debt/Captial 0.0% 0.0% 0.0%
ROE 0.0% 0.0% 0.0%
ROIC 0.0% 0.0% 0.0%

Standalone - Acquirer
EPS
EBIT/Interest
Debt/Captial
ROE
ROIC
2000 2001 2002 2003 2004 2005 2006

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
- - - - - - -

- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -

- - - - - - -
- - - - - - -
 - - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -

- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -

- - - - - - -
- - - - - - -

- - - - - - -

- - - - - - -

- - - - - - -
- - - - - - -
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2007 2008 <-- =Synergies!Q2

0.0% 0.0% <-- =revolver_rate

0.0% 0.0% <-- =income_rate
0.0% 0.0% <-- =tax_rate
- - <-- =div_per_share

- - <-- =Synergies!P4
- - <-- =Q13+Q14-Q15

- - <-- =Synergies!P6
- - <-- =Q18+Q19-Q20
- - <-- =Q16-Q21

- - <-- =P26
- - <-- =SUM(Q24:Q26)
- - <-- =Q22-Q27

- - <-- ='Debt Issues'!Q8

- - <-- =Q106
- - <-- =Q105
- - <-- =Q33+Q34-Q35
- - <-- =Q28-Q36
- - <-- =MAX(Q37*Q8,0)

- - <-- =Q37-Q38-Q39
- - <-- =Q40
- - <-- =Q27
- - <-- =Q94
- - <-- =Q43+Q44-Q45

- - <-- =Synergies!Q8
- - <-- =Q48+Q49-Q50
- - <-- =Q46-Q51
- - <-- ='Debt Issues'!Q5

- - <-- ='Debt Issues'!Q6

- - <-- =Q9*Q111
- - <-- =Q52+Q53+Q54-Q55-Q56

- - <-- =Q102

- - <-- =Q64+Q63
- - <-- =P66+Q51
- - <-- =P67+Q44
- - <-- =Q66-Q67
- - <-- =P69
- - <-- =P70-Q39
- - <-- =Q61+Q65+Q68+Q69+Q70

- - <-- =Q76+Q75

- - <-- ='Debt Issues'!Q7

- - <-- =Q103
 - - <-- =Q80+Q79
- - <-- =P82
- - <-- =P83
- - <-- =P88
- - <-- =Q43
- - <-- =Q54
- - <-- =Q56
- - <-- =Q84+Q85+Q86-Q87
- - <-- =Q88+Q83+Q82+Q81+Q77

- - <-- =Q71-Q89

- - <-- =Q65-Q77
- - <-- =Q93-P93

- - <-- =P100
- - <-- =Q57
- - <-- =Q98+Q99

- -
- -

- -
- -

- -

- -

- -
- -
0.0% 0.0%
0.0% 0.0%
0.0% 0.0%
EPS Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Shares Issued 00

12

10

Consolidated
Standalone
2

0
Debt to Capital Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Debt Issued 00

12

10

Consolidated
Standalone

0
ROE Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Shares Issued 00

12

10

Consolidated
Standalone
2

0
ROI Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Shares Issued 00

12

10

Consolidated
Standalone
2

0
Interest Coverage Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Debt Issued 00

12

10

Consolidated
Standalone

0
acquirer_name ='Transaction Assumptions'!$E$3
debt_2 ='Transaction Assumptions'!$E$24
debt_cap1 =OFFSET('Consolidated Financials'!$F$116,0,0,1,'Transaction Assumptions'!$
debt_cap2 =OFFSET('Consolidated Financials'!$F$123,0,0,1,'Transaction Assumptions'!$
debt_issue_1 ='Transaction Assumptions'!$E$19
debt_issue_costs ='Transaction Assumptions'!$L$16
debt_rate_1 ='Transaction Assumptions'!$E$20
debt_rate_2 ='Transaction Assumptions'!$E$25
debt_retire_rate_1 ='Transaction Assumptions'!$L$7
debt_retire_term_1 ='Transaction Assumptions'!$L$8
debt_retired_1 ='Transaction Assumptions'!$L$6
debt_retirement_switch ='Transaction Assumptions'!$L$2
debt_target ='Transaction Assumptions'!$E$10
debt_term_1 ='Transaction Assumptions'!$E$21
debt_term_2 ='Transaction Assumptions'!$E$26
dep_rate_write_up ='Transaction Assumptions'!$L$20
div_per_share ='Transaction Assumptions'!$L$23
E10debt_target ='Transaction Assumptions'!$E$10
eps1 =OFFSET('Consolidated Financials'!$F$114,0,0,1,'Transaction Assumptions'!$L$26)
eps2 =OFFSET('Consolidated Financials'!$F$121,0,0,1,'Transaction Assumptions'!$L$26)
equity_consideration_cash ='Transaction Assumptions'!$E$8
equity_consideration_shares ='Transaction Assumptions'!$E$9
income_rate ='Transaction Assumptions'!$L$22
int_cov =OFFSET('Consolidated Financials'!$F$115,0,0,1,'Transaction Assumptions'!$L$26)
int_cov2 =OFFSET('Consolidated Financials'!$F$122,0,0,1,'Transaction Assumptions'!$L$26)
revolver_rate ='Transaction Assumptions'!$L$21
roe_1 =OFFSET('Consolidated Financials'!$F$117,0,0,1,'Transaction Assumptions'!$L$26)
roe_2 =OFFSET('Consolidated Financials'!$F$124,0,0,1,'Transaction Assumptions'!$L$26)
roi_1 =OFFSET('Consolidated Financials'!$F$118,0,0,1,'Transaction Assumptions'!$L$26)
roi_2 =OFFSET('Consolidated Financials'!$F$125,0,0,1,'Transaction Assumptions'!$L$26)
scenario_name ='Transaction Assumptions'!$E$4
shares_issued ='Transaction Assumptions'!$E$14
stock_price ='Transaction Assumptions'!$E$15
target_name ='Transaction Assumptions'!$E$2
tax_rate ='Transaction Assumptions'!$L$19
total_enterprise_value ='Transaction Assumptions'!$E$11
transaction_cost ='Transaction Assumptions'!$L$15
transaction_date ='Transaction Assumptions'!$E$5
value_of_shares ='Transaction Assumptions'!$E$16
x_range =OFFSET('Consolidated Financials'!$F$2,0,0,1,'Transaction Assumptions'!$L$26)
 EPS Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Shares Issued 00
Interest Coverage Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Debt Issued 00
saction Assumptions'!$ Debt to Capital Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Debt Issued 00
saction Assumptions'!$ ROE Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Shares Issued 00
ROI Comparison: Target Name Combined with Acquirer Name Transaction Value 00 Shares Issued 00

saction Assumptions'!$L$26)
saction Assumptions'!$L$26)

saction Assumptions'!$L$26)
saction Assumptions'!$L$26)

saction Assumptions'!$L$26)
saction Assumptions'!$L$26)
saction Assumptions'!$L$26)
saction Assumptions'!$L$26)

ction Assumptions'!$L$26)
res Issued 00
Value 00 Debt Issued 00
ue 00 Debt Issued 00
res Issued 00
es Issued 00