UNS Mental Exercise, page-3

Valuing the company is a straight forward task for Morgan Stanley. Take the projected sales and expenses for the individual products and combine into annual projections for the company. Then discount the next 10 year projections back to a net present value, no big deal. The rub is in the projections, getting the buyer and seller to agree on the assumptions is where all the conversation will take place. Some products seem to have pretty good sales data such as PFS, but the assumptions for the new and unique products will be were the "art" is and that is where MS will earn their fee. I have been looking at potential companies the last few days, certainly no lack of qualified and capable options that could be the interested party. All in all I like Medtronic and they have been on an acquisition spree recently. They are a $100B company with $20B in cash and we would compliment their products nicely.