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("BIP") (NYSE: BIP , TSX: BIP ) and its institutional partners (collectively, "Brookfield Infrastructure") reached a definitive agreement to acquire 100% of the world-class midstream asset portfolio Colonial Enterprises ("Colonial"), which includes the Colonial Pipeline, for an enterprise value of approximately $9 billion or 9x EBITDA.
As EBITDA and revenue multiples on larger platform acquisitions increased through 2021 and into the early part of 2022, many sponsors turned to consolidation and “buy and build” strategies, characterized by using smaller add-on acquisitions with lower price multiples to build value. This post comes to us from Goodwin Procter LLP.
This also reinforces the drive to partner with an advisory team that can provide strategic insights for mitigating the impact of higher interest rates, optimizing debt structures, and identifying alternative financing solutions to sustain long-term growth. How Does the Cost of Debt Influence M&A? What is EBITDA?
Worst Case Outcome: Elon loses ~90%+ of his invested equity and gets a very negative IRR. The key problems are: Very High Purchase Multiple: The historical (FY 21) EBITDA multiple here is 52x , and the FY 22 multiple based on consensus estimates is 28x. Most Likely Outcome: A 10-15% IRR if parts of the deal go well and others do not.
Debtfinancing is particularly important for M&A because interest payments are deductible. However, interest limitation rules reduce their deductibility, raising the cost of debtfinancing and acquisitions. Investments in M&A play a critical role in economic growth and innovation, totaling nearly $2.6
Leveraged Buyouts (LBOs) are powerful tools in the financial world, used by private equity firms and savvy investors to maximize returns. Introduction Leveraged Buyouts (LBOs) are some of the most intriguing yet complex mechanisms in corporate finance. But how do you build a solid LBO analysis from scratch? a manufacturing company.
DEBRA Proposal (« Debt-Equity Bias Reduction Allowance). In early May, the European Commission unveiled its proposal for a "DEBRA" (Debt-equity bias reduction allowance) Directive, aimed at encouraging companies to finance their investments with equity and capital contributions, instead of resorting to loans (bank or other).
Investors we have spoken to have indicated that their lender networks have remained eager to provide considerable debt for higher quality deals. Conservative investors are unlikely to opt for more than 3x debtfinancing for acquisitions during a period of market volatility.
times estimated 2023 adjusted EBITDA multiple. Targa now estimates standalone 2022 adjusted EBITDA to be between $2.675 billion and $2.775 billion and year-end leverage ratio of about 2.7 Fully cash and debt-financed transaction; expect pro forma year-end 2022 leverage ratio around 3.5 times and improving thereafter.
Highlights: Outbrain will acquire Teads in an approximately $1 billion transaction, consisting of $725 million upfront cash and $25 million deferred cash, 35 million shares of common stock of Outbrain, and $105 million of convertible preferred equity. subject to customary funding conditions. The initial conversion price is $10.00
Free Cash Flows to Equity (Potential Dividends) The most intuitive way to think about potential dividends is to think of it as the cash flow left over after every conceivable business need has been met (taxes, reinvestments, debt payments etc.).
March 04, 2025 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. Transaction Highlights Transaction values ADT at a cash-free, debt-free enterprise value of $12.65 million of debtfinancing which closed simultaneously with the acquisition, and the remainder from Star's cash on hand. OLD GREENWICH, Conn., million ( 1 ).
The two companies are preliminarily reporting a combined Ex-TAC Gross Profit of $623 million and Adjusted EBITDA of $230 million in 2024 including $65-75 million of estimated synergies 1. Under the revised terms, there is no deferred cash payment or convertible preferred equity component. million for FY 2024 Adjusted EBITDA of $17.0
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