In February 2011, David Blair, CEO of Catalyst Health Solutions, was considering another acquisition. Catalyst was already the fastest-growing pharmacy benefit management company in the United States, and Blair had his eye on a subsidiary of Walgreen Co., the second-largest retail drugstore chain in the country. Walgreen Co. was focusing its corporate strategy on the retail business and had just purchased 258 Duane Reade pharmacies in New York for over $1 billion. Walgreen Co.'s subsidiary, WHI, managed pharmacy benefits and was a relatively small part of the overall company, contributing less than 2% of its bottom line. Might Walgreen Co. be interested in selling WHI?

Spreadsheet Supplement for case UV5670.

Carrier, a division of mulitbusiness United Technologies Corporation (UTC), is looking for ways to grow its business. Carrier is considering expansion into commercial refrigeration and is examining a proposed purchase of Tyler Corporation--a major player in the display-case market. The case provides detail on various segments of the heating and cooling markets and thus allows analysis of the attractiveness of these segments to Carrier. The case also provides detailed forecasts for students to use in valuing the target, Tyler. The mechanics of a basic valuation are straightforward. There are, however, several opportunities for a more refined analysis.