Question
A company is interested in acquiring a retailer with the below financial parameters. Non-Current Assets: $5m Current Assets: $1m Non-Current Liabilities: $10m Current Liabilities: $2m
A company is interested in acquiring a retailer with the below financial parameters.
| Non-Current Assets: $5m Current Assets: $1m Non-Current Liabilities: $10m Current Liabilities: $2m Equity: $-6m | Sales: $10m Gross Profit: $3m EBITDA: $1m Capex: $0.5m FCF: $-2.5m |
What can you tell about the retailer given the above numbers?
How can the value of the retail company be estimated?
What should the acquirer pay to the retail company shareholders for acquiring 100% of the shares?
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
