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On December 1 st 2020, AcuquirerCo acquired TargetCos 100% shares. The M&A deal that took place between TargetCo and AcquirerCo with a Fixed Exchange Ratio
On December 1st 2020, AcuquirerCo acquired TargetCos 100% shares. The M&A deal that took place between TargetCo and AcquirerCo with a Fixed Exchange Ratio Structure based on basic shares outstanding. According to the terms of the agreement, AcquirerCo delivered its 150 mil shares to TargetCo in exchange of TargetCos 100% basic shares. Assumptions are as shown below ($ in million, except per share data; shares in millions).
Offer Price Per Share | $25 |
Acquirer Share Price | $75 |
Acquirer Shares Exchanged | 100 |
TargetCo's Debt | $900 |
TargetCo's Preferred Stock | $150 |
TargetCo's Minority Interest | $350 |
TargetCo's Cash | $200 |
TargetCo's Sales (2014:Q1 Reported Financial Statement) | $1500 |
TargetCo's Sales (2013:Q4 Reported Financial Statement) | $3750 |
TargetCo's Sales (2013:Q3 Reported Financial Statement) | $3000 |
TargetCo's Sales (2013:Q2 Reported Financial Statement) | $2000 |
TargetCo's Sales (2013:Q1 Reported Financial Statement) | $1250 |
Tranches | Number of Shares (mil) | Exercise Price |
#1 | 100 | $26 |
#2 | 150 | $28 |
#3 | 250 | $32 |
What is the EV/LTM Sales multiple for TargetCo?
1)4.25
2) 2.76
3) 3.11
4) 2.25
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