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Acquisition Price Analysis

I need help in calculating a hypothetical acquisition purchase price supposing that Dick´s Sporting Goods is acquiring Hibbett Sports. I need to include a base purchase price and the maximum purchase price the firm would be willing to pay. Also, I need help in determining how Dick´s will operate after the merger, and how the deal could be financed.

In this scenario Dick´s Sporting Goods is the main company and Hibbett Sports is the competitor (Dicks´s is acquiring Hibbett Sports).

Since the annual reports are too heavy to upload, these are the investor relations websites for both companies, in which the annual reports can be downloaded:

Investor website for Dicks Sporting Goods:

http://phx.corporate-ir.net/phoenix.zhtml?c=132215&p=irol-irhome

Investor website for Hibbett Sports:

http://phx.corporate-ir.net/phoenix.zhtml?c=78137&p=irol-irhome

Solution Preview

You should see the attachment.
Update:
For Hibbet Sports the free cash flow is different for each year between 2009 and 2013. However, the difference between the 2009 figure and 2013 is (65.2 minus 25.3) million dollars equals 39.9 million dollars. If this figure is divided by five, ...

Solution Summary

This solution explains acquisition price analysis of Dicks Sports and Hibbett Sports . The sources used are also included in the solution.

$2.19