Question
Acquire LatAm company at 4x, $250MM EBITDA. No cash, 600MM Debt. Simultaneous roll up US company, purchase for 100MM equity, 500MM Debt, cash on
Acquire LatAm company at 4x, $250MM EBITDA. No cash, 600MM Debt. Simultaneous roll up US company, purchase for 100MM equity, 500MM Debt, cash on books is 100MM, $50MM EBITDA. Create scale entity Americas Inc. for higher multiple premium in market. @Exit EBITDA increased $200MM, Debt is the same, selling at 6x US Company is accretive or dilutive to LatAm Earnings?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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