You work for a leveraged buyout firm and are evaluating a potential acquisition of Boogle Inc. Boogle's share price is 18 and it has 3 million shares outstanding. You believe that if you buy the company and replace its management, its value will increase by 50%. You are planning to make a takeover of Boogle and will offer 25 per share for control of the company. Assuming you control 50% of the business, what will be your profit on the transaction?

Answer rating: 100% (QA)

To calculate the profit on the transaction we need to consider the initial investment required to ac... View the full answer