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Ex. 6 You are analysing the potential acquisition of company Z and need to calculate the enterprise Value EV to revenue multiple RM of company
| Ex. 6 | |||||||||||
| You are analysing the potential acquisition of company Z and need to calculate the enterprise Value EV to revenue multiple RM of company Z considering the following information: | |||||||||||
| Closing share price Z | 63 | EUR per share (at closing day of acquisition date) | |||||||||
| Number of shares outstanding Z | 750 000 | ||||||||||
| Equity of company Z | 3 150 000 | EUR mn | |||||||||
| Debt of company Z | 1 800 000 | EUR mn | |||||||||
| Cash of company Z | 1 350 000 | EUR mn | |||||||||
| Total Annual Revenue | 1 200 000 | EUR mn | |||||||||
| Considering that the industry average ratio EV/ RM (enterprise Value to revenue multiple) is of 7.1x, would you advise the acquisition of company Z? | |||||||||||
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Process To Profits Strategic Planning For A Growing Business
Authors: William Lasher
1st Edition
0324223870, 9780324223873
