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Betty is considering alternative ways to raise cash needed for expanding her business by selling a subsidiary with the following financial performance metrics: Last 12
Betty is considering alternative ways to raise cash needed for expanding her business by selling a subsidiary with the following financial performance metrics: Last 12 months Projected Next 12 months Revenues 50,000,000 55,000,000 Net Income 3,000,000 3,500,000 Cash Flow 4,000,000 4,200,000 EBITDA. 4,400,000 5,000,000 If she believes that minority share prices for public companies similar to her subsidiary sell for 20 times next years EBITDA, and if she perceives that a control premium of 20% to the minority multiple is appropriate, recognizing that the subsidiary has $2 million in debt, ... how much cash will be generated
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