Data After Merger

Current Scenario
Market share
HP COMPAQ Merge Dell IBM Lenxmark
PC 27.50% 12.80% 7.30% 0.00%
P& I 56.80% 0 2.50% 9.50%
Servers 32.90% 7% 15.70% 0
Storage
OSS 24.90% 3.90% 8.90% 0.00%
UNIX 19.60% 0 10.80% 0.00%
IT 3.60% 0 8.40% 0.00%

Current Scenario Financial Data 2000

HP & COMPAQ IBM SUN
Revenue 91165 88396 15721
OP margin 19.40% 18.30% 20.20%
NP margin 8.70% 9.20% 11.80%
 Sun
0.00%
0.00%
23.90%

13.60%
21.90%
0.70%

2000
DELL LENXMARK
31888 3807
9.40% 14.40%
7.00% 7.50%
 Market share

HP COMPAQ Merge Dell IBM Lenxmark

PC 27.50% 12.80% 7.30% 0.00%

$41851 19479.68 11109.51
P& I 56.80% 0 2.50% 9.50%
$22720 1000.00 3800.00
Servers 32.90% 7% 15.70% 0
$13383 2847.39 6386.29
Storage
OSS 24.90% 3.90% 8.90% 0.00%
$1193 186.93 426.58
UNIX 19.60% 0 10.80% 0.00%
$2892 1593.65
IT 3.60% 0 8.40% 0.00%
14220 33180

Revenue
HP & COMPAQ IBM SUN DELL
Revenue 91165 88396 15721 31888
CA 38355 43880 6877 9491
TA 58865 88349 14152 13435
OP margin 19.40% 18.30% 20.20% 9.40%
NP margin 8.70% 9.20% 11.80% 7.00%
 Segment

Sun Dell IBM Lenxmark Sun

0.00% Hp merging with compaq will help them to gain major market share in many sec
HP mergimg with Comaq its revenue will rose upto 91billion it wil be the largest p
0.00% Sun company is leading in Np margin , followed by Ibm and then HP & comaq

23.90%
9721.80

13.60%
651.85
21.90%
3231.56
0.70%
2765

LENXMARK
3807
1244
2073
14.40%
7.50%
or market share in many sector except in IT
1billion it wil be the largest player in the industry(bigger than IBM) but by few amount
m and then HP & comaq
 Current Scenario Fina
HP & COMPAQ
Revenue 91165
CA 38355
TA 58865
OP margin 19.40%
NP margin 8.70%

Future Scenario Assumin

Fina
HP & COMPAQ
Revenue 97546.55
OP margin 20.7580%
NP margin 9.3090%

Assumin
Fina
HP & COMPAQ
Revenue 104374.8085
OP margin 22.2110600%
NP margin 9.9606300%

Assumin
Fina
HP & COMPAQ
Revenue 111681.045095
OP margin 23.765834200%
NP margin 10.657874100%

NPV Of the Revenue over next 3 years at 7%

Purchase Price is
 Financial Data 2000
IBM SUN DELL LENXMARK
88396 15721 31888 3807
43880 6877 9491 1244
88349 14152 13435 2073
18.30% 20.20% 9.40% 14.40%
9.20% 11.80% 7.00% 7.50%

Assuming 7% Industry Growth

Financial Data 2001
IBM SUN DELL LENXMARK
94583.72 16821.47 34120.16 4073.49
19.5810% 21.6140% 10.0580% 15.4080%
9.8440% 12.6260% 7.4900% 8.0250%

Assuming 7% Industry Growth

Financial Data 2002
IBM SUN DELL LENXMARK
101204.5804 17998.9729 36508.5712 4358.6343
20.9516700% 23.1269800% 10.7620600% 16.4865600%
10.5330800% 13.5098200% 8.0143000% 8.5867500%

Assuming 7% Industry Growth

Financial Data 2003
IBM SUN DELL LENXMARK
108288.901028 19258.901003 39064.171184 4663.738701
22.418286900% 24.745868600% 11.515404200% 17.640619200%
11.270395600% 14.455507400% 8.575301000% 9.187822500%

$14 Billions
$25 Billions
Market size (US$ millions) 2000 2001 2002
Personal Computers $152,185.00 $163,598.88 $175,868.79
$152,185.00 $149,141.30 $160,326.90
Desktop PC $105,011.00 $112,886.83 $121,353.34
$102,910.78 $110,629.09
Notebook PCs $47,174.00 $53,306.62 $60,236.48

Printing and Imaging $40,000.00 $43,200.00 $46,656.00

Inkjet Printers $33,851.00 $36,559.08 $39,483.81
Monochrome Laser Printers $5,824.00 $6,289.92 $6,793.11
Desktop Color Printers $325.00 $383.50 $452.53

Servers $40,677.00 $43,931.16 $47,445.65

Storage $19,549.00 $21,112.92 $22,801.95

Open Systems SAN $4,793.00 $5,176.44 $5,590.56
Unix Disk Storage $14,756.00 $15,936.48 $17,211.40

IT Services $395,000.00 $434,500.00 $477,950.00

 Growth
2003 2001 HP Compaq 2002
$189,058.95 Optimistic $22,740.24 $22,249.45
$172,351.41 Pessimistic $20,730.64 $20,283.22
$130,454.84
$118,926.27
$68,067.22

$50,388.48 $22,118.40 $2,419.20

$42,642.51
$7,336.56
$533.99

$51,241.31 $7,160.78 $7,292.57

$24,626.11
$6,037.80 $1,857.94 $833.41
$18,588.31 $1,816.76 $1,306.79

$525,745.00 $8,255.50 $7,386.50

$61,940.02 $39,521.69
Growth
HP Compaq 2003 HP Compaq
$24,445.76 $23,918.16 $26,279.19 $25,712.02
$22,285.44 $21,804.46 $23,956.85 $23,439.79

$23,887.87 $2,612.74 $25,798.90 $2,821.75

$7,733.64 $7,875.98 $8,352.33 $8,506.06

$491.97 $900.08 $531.33 $972.09

$1,917.35 $1,411.33 $2,119.07 $1,524.24

$9,081.05 $8,125.15 $9,989.16 $8,937.67

$65,397.32 $42,729.74 $70,747.63 $46,201.60
 Revenue - If not merged VS if merged
2001 HP Compaq Merged Entity 2002 HP Compaq Merged Entity
PC Op 22740.24 22249.447 44989.690625 24445.76 23918.16 48363.9174219
PC 20730.64 20283.2168 41013.8575 22285.44 21804.46 44089.8968125
Printing & iMaging 22118.4 2419.2 24537.6 23887.87 2612.736 26500.608
Servers 7160.779 7292.57256 14453.35164 7733.641 7875.978 15609.6197712
Storage 1857.937 833.40684 2691.3438 491.9689 900.0794 1392.0482448
1816.759 $1,306.79 3123.54872 1917.35 1411.335 3328.68445056
8255.5 7386.5 15642 9081.05 8125.15 17206.2
TOTAL 61940.02 38214.8962 101461.70166 65397.32 42729.74 108127.057279

HP
merged
entity
Comparison chart
2001 61940.02 101461.7 140000
2002 65397.32 108127.1
120000
2003 70747.63 116949
100000

Revenue (in billions)

80000

60000

40000

20000

0
2001 2002
erged
2003 HP Compaq Merged Entity
26279.19 25712.02 51991.21
23956.85 23439.79 47396.64
25798.9 2821.755 28620.66
8352.333 8506.057 16858.39
531.3264 972.0857 1503.412
2119.067 1524.241 3643.309
9989.155 8937.665 18926.82
70747.63 46201.6 116949.2

omparison chart

2002 2003