Hi Phil Town-
How do we calculate the BIG FIVE numbers after an important merger or acquisition, for example the acquisition of Gillette by Procter and Gamble. It seems like financial information and chart can no longer be obtain for Gillete (G) on Investools and MSN. Do we need to do some merging of financial data before we calculate our big five? Do we need to calculate the big 5 of Gillette before the acquisition?
In calculating the sticker price, we need to know the Growth Rate and Future PE. Will the acquisition affect the estimation of the growth rate? Is the historical PE for PG still be meaningful in estimating the future PE?
I hope this email is short enough for you and will not affect your snowboarding. Happy 2007! :)
This is a really interesting question. Before I get into the Big Five after a merger, let's talk about what happens in most mergers, because I think we're in for a lot of them in the next few years.