Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Based on acquisition comparables analysis, assume that the appropriate LTM EBITDA multiple for a takeover of XYZ Company is 8.0x. Also, assume that XYZ Company
Based on acquisition comparables analysis, assume that the appropriate LTM EBITDA multiple for a takeover of XYZ Company is 8.0x. Also, assume that XYZ Company has 40 million shares outstanding, no options, $100 million of Net Debt, $125 million LTM EBITDA and a current share price of $18.00. What is the implied premium assuming an 8x EBITDA transaction multiple?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started