In this workout, we're trying to find the proposed annual synergies for an acquisition by James Mcarov whitewave Foods. There are descriptions of them both a little bit further up, but we're starting down in rows 42 downwards.

We've got four comparable transactions here that have happened in the past to our proposed deal in years 16 and what we've got over on the right hand side are the synergies as a percentage of target sales for each of those transactions and we then taken the median of those.

So let's now start calculating the annual synergy cash flows.

I'm gonna start with the median. Let's take that percentage.

5.7% and then I can take White Waves sales and if we scroll up it's just a little bit above our comps table. So 3994.8. I'm going to lock that.

And my synergies estimate is the synergies percentage multiplied by White Wave sales.

However, we might want to have a range of synergies figures, so I'm going to calculate the maximum of the four synergy percentages that we've got here.

While I'm here, I'm going to do the minimum as well.

the same four percentages and I want to apply them both to White Waves sales figures.

So I now find 7% of White Wave sales and 4.5% of White Wave sales.

Fantastic.

So what we've now got are a range of synergy figures if we were more convinced of the lower range. We could go with annual synergy savings of 179.3.

If we were more convinced that the higher range we could go for 279.6 or instead if we want to take a median then we would take a figure around 229 per year.