Using information about the following company, calculate the share premium / (discount) a private equity house...
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Using information about the following company, calculate the share premium / (discount) a private equity house will be willing to pay for the Company. Assume pre deal net debt is refinanced. Assume the company has no dilutive securities. Required IRR 23.2% Total debt immediately after the LBO 573.1 Exit multiple (EV/EBITDA) 8.9 x EBITDA % growth per year 7.2% 3 Exit year % of debt remaining at exit Current share price Shares outstanding LTM EBITDA Pre deal net debt 55.1% 17.5 41.6 167.5 290.2 Using information about the following company, calculate the share premium / (discount) a private equity house will be willing to pay for the Company. Assume pre deal net debt is refinanced. Assume the company has no dilutive securities. Required IRR 23.2% Total debt immediately after the LBO 573.1 Exit multiple (EV/EBITDA) 8.9 x EBITDA % growth per year 7.2% 3 Exit year % of debt remaining at exit Current share price Shares outstanding LTM EBITDA Pre deal net debt 55.1% 17.5 41.6 167.5 290.2
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