Today, many valuation techniques exist. This paper centers on the discounted cash flow and the market multiple analysis methods. No matter the method used, it is important to know that the target company in general does not continue to operate as a separate unit. The acquired firm becomes part of the acquiring firm’s assets. This is important to consider because the operational changes that occur significantly influence the value of the business. For that reason those changes have to be considered.

As a methodology, discounted cash flow is considered the ideal tool to value businesses. This approach is set apart from others because it is based on projected, future operating results rather than on past operating results. Based

Anheuser-Busch Companies, Inc. would make an offer to purchase Adolph Coors Company using a combination of cash and stock. Anheuser-Busch Companies, Inc. would probably take on debt to help in the acquisition of Adolph Coors Company.

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So Adolph Coors Company as an independent operator is valued at $1,968,570,464.51.

Anheuser-Busch’s production and distribution systems are unmatched. They have twelve breweries and a system of more than six hundred wholesalers who distribute their brands. Sixty-two percent of Anheuser-Busch’s wholesalers solely focus on A-B brands.

The last category of ratios is market value. The ratios that are included in market value consist of the price/earnings ratio, the price/cash flow ratio, and the market/book value ratio.

The company that is evaluated in this paper as the candidate for takeover is Adolph Coors Company. The acquiring company would be Anheuser-Busch Companies, Inc. This is a merger that would not pass the tough scrutiny of the Federal Trade Commission. The FTC would challenge such a merger.

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