Private Equity firm is looking to buy a Beryan Company through a Leveraged Buyout Structure (LBO). Please
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Private Equity firm is looking to buy a Beryan Company through a Leveraged Buyout Structure (LBO). Please use the summary below to answer the following questions:
- What is the EV/EBITDA prior to the transaction
- What is the EV/EBITDA after the transaction
- What is the Total Market Value Purchase Price needed to buy the Company
- How much is the Total Debt after the transaction
- Assuming Equity investors receive 50% of the cash flows what will be their return on invested capital in year 1 and year 2 assuming capital expenditures and interest stay unchanged
Share Price | 30 |
Shares Outstanding | 1,000 |
Total Debt | 10,000 |
EBITDA | 6,000 |
Capital Expenditures | 1,000 |
LBO Premium | 30% |
Equity Contribution to purchase price | 25% |
Interest (after the transaction) | 2,000 |
Taxes | 0 |
EBITDA Growth Rate | 10% |
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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