What is involved in modeling a multi-billion dollar acquisition deal?

In this case study, you’ll analyze United Technologies’ $16 billion acquisition of Goodrich Corporation, one of the largest aerospace & defense M&A deals in recent years.

Officially announced on September 22, 2011, the deal represented a move by United Technologies to get back into the commercial aircraft market and begin building market share there once again.

Goodrich Corporation is a leading global supplier of systems and services to the aerospace & defense sector, and designs and delivers landing gear, engine control systems, sensors and safety systems, and more.

United Technologies’ $16 Billion Acquisition of Goodrich

Case Study Homework

PART 1 

Everything you need for Part 1 is on the “Buyer-Seller” tab within the Excel file. We have included equity research and both companies’ 10-Ks here, but those are only for your reference and are not necessary for this exercise. Be sure to download Part 1, then read the Word file. In that file you will find all the instructions for this case study model plus some special Excel instructions (to make sure the model does not crash).

PART 2 
In part 2, we’ll complete the merger model by allocating the purchase price, combining the balance sheets, and calculating possible revenue and expense synergies. We’ll use the output of that analysis to learn more about the deal and see whether or not it made sense for both parties. Download Part 2 and start by reading the Word file.

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