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AutoDrive Inc., a company specializing in autonomous driving technology, is the target of a leveraged buyout by Alpha Investments, a private equity firm. Alpha is
AutoDrive Inc., a company specializing in autonomous driving technology, is the target of a leveraged buyout by Alpha Investments, a private equity firm. Alpha is acquiring AutoDrive on a cashfree, debtfree basis for a total enterprise value of x the companys projected EBITDA of $ million. Alpha plans to finance the acquisition with $ million of new debt and new equity from funds managed by the firm. The existing management team of AutoDrive is rolling over a portion of their equity proceeds into the deal so that they have pro forma ownership. Assuming that AutoDrive has no existing debt and no excess cash on its balance sheet at close, and $ million of transactionrelated expenses, what is the size of the equity check that Alpha Investments needs to write to finance this LBO transaction? A$ million B$ million C$ million D$ million
AutoDrive Inc., a company specializing in autonomous driving technology, is the target of a leveraged buyout by Alpha Investments, a private equity firm. Alpha is acquiring AutoDrive on a cashfree, debtfree basis for a total enterprise value of x the companys projected EBITDA of $ million. Alpha plans to finance the acquisition with $ million of new debt and new equity from funds managed by the firm. The existing management team of AutoDrive is rolling over a portion of their equity proceeds into the deal so that they have pro forma ownership.
Assuming that AutoDrive has no existing debt and no excess cash on its balance sheet at close, and $ million of transactionrelated expenses, what is the size of the equity check that Alpha Investments needs to write to finance this LBO transaction?
A$ million
B$ million
C$ million
D$ million
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