Assume the company has no existing cash pre deal. LTM EBITDA at entry Entry and exit EV/EBITDA multiple Amount of acquisition debt financing Total amount of debt paid off by exit Exit year Expected yearly EBITDA growth rate 181.3 8.1 X 768.3 198 4 3.7%

Assume the company has no existing cash pre deal. LTM EBITDA at entry Entry and exit EV/EBITDA multiple Amount of acquisition debt financing Total amount of debt paid off by exit Exit year Expected yearly EBITDA growth rate 181.3 8.1 X 768.3 198 4 3.7%

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter12: Valuation: Cash-flow Based Approaches

Section: Chapter Questions

Problem 2CIC

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