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LBO Second Case

Merger & Acquisition

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Divyam
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27 views2 pages

LBO Second Case

Merger & Acquisition

Uploaded by

Divyam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Cost of deal

purchase price 4000


restructuring cost 50
fees 60
4110 operational cost, capex cost , WC costs not to be included

Company's debt capacity


Interest Rate 4.45%
Interest Coverage Ratio 2.5X
EBIT 500
Total Interest that can be paid 200
previous debt interest 48
Remaining interest 152
Remaining debt 3415.73 This is incremental debt taken

PE Funding Calculation
Capital Stucture
Equity 70 from management
PE 624.2697 balancing figure

Debt
Senior Debt 1200
Debt 3415.73

Total Cost of deal 4110 don't consider 1200 as it was taken last year for some other
WC costs not to be included debt of 1200 also not included as it is not retired immediately

2015
0 1 2 3 4 5
Revenue 5000 5200 5408 5624.32 5849.293 6083.265
EBIT 500 500 520 540.8 562.432 584.9293
Senior debt Interest 48 48 48 48 48
New Debt Interest 152.012 144.9636 138.5127 132.3489 126.4594
Tax 59.9976 65.40727 70.85745 76.41661 82.09398
PAT 239.9904 261.6291 283.4298 305.6665 328.3759
Dep 85 88.4 91.936 95.61344 99.43798 103.4155
Capex 150 156 162.24 168.7296 175.4788
Add depr-capex -61.6 -64.064 -66.62656 -69.29162 -72.06329
Change in WC -20 -20 -20 -20 -20
Cash available to repay debt/FCFF 158.3904 177.5651 196.8032 216.3748 236.3126
Remaing debt 3416 3257.61 3112.646 2974.133 2841.784 2715.325

ken last year for some other purpose not to take compnay private

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