On the analysis tab we can look at two things of interest.

The first one I want to look at here is the equity ownership.

Whenever your issuing shares to a Target, you want to make sure that after the deal you own a sizable percentage of the new company? If the target ends up with more than 10% of the new company, well, that means they can in some instances block any further m&a IE Acquisitions of your company and certainly if they own more than 25% they can definitely block it.

So we do want to check that.

However, in this deal we weren't doing an equity issuance to the Target instead. We were doing an extra-issions to the market a secondary issue. We were issuing shares the market getting cash back from the market and then giving that cash to Monsanto.

So we had no issues here at all buyer remained wheel 100% shareholding And The Monsanto shareholders ended up with no shares. They got to walk away with cash.

So we move on to the PE ratios. We've got the first one here the transaction PE Ratio or the acquisition or the target PE ratio.

And we see here that that's 26.8 the way that's been calculated is to take the share price of the targets and then divide it by the EPS of the target.

I like to look at these numbers as earnings yields. So if I go off to the right hand side here, that's exactly what we'll do. We'll take one divided by the pe's so one divided by the transaction PE.

Gives me a yield of 3.7% Let's copy them down.

And what do we notice? Well, I noticed that the acquire a PE is 5.5% That's saying I want to take my acquires 5.5% yield reinvest it and only get 3.7% return instead.

This says a 100% Equity Finance deal would be dilutive.

However, the debt PE says I want to borrow at a cost of 3.5% and I then want to reinvest and then 3.7% There is a marginal profit to be made there.

So, let's see how this deal was actually funded.

if we go to the assumptions tab in the sources of funds we can see what those sources were. We use some excess cash on buyers balance sheets.

They did a conversible bond issue. So that's debt and they did an enormous debt issuance and we sum those three up debt plus cash comes to 47,000 compare that to the relatively small Equity issuance of only 14,000.

So although the PE ratios can only tell us what would happen if we had a 100% ft Finance deal or if we had a 100% debt Finance deal.

We can see that because the 100% debt Finance deal looks like it would be a creative and maybe 80% debt Financial might also be accretive as well. But that's why we have to build the model because we can then see the exact mix of those fundings.