Remove Debt Financing Remove EBITDA Remove Equity
article thumbnail

Brookfield Infrastructure Announces the Acquisition of Colonial Enterprises

Benzinga

("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.

article thumbnail

Goodwin Procter Discusses Add-On Acquisitions in Private Equity

Reynolds Holding

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.

Equity 45
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Unlocking Financial Multiples: Why They’re Holding Strong Amid Rising Debt Costs

Scott Mashuda

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?

EBITDA 89
article thumbnail

The Twitter Buyout: Is Elon Musk a Madman or a Genius?

Brian DeChesare

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.

EBITDA 111
article thumbnail

The Unforeseen Effects on M&A of Interest Limitation Regulations

Reynolds Holding

Debt financing is particularly important for M&A because interest payments are deductible. However, interest limitation rules reduce their deductibility, raising the cost of debt financing and acquisitions. Investments in M&A play a critical role in economic growth and innovation, totaling nearly $2.6

article thumbnail

How to Create LBO Analysis – Step-by-Step Guide with Example

Equilest

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.

article thumbnail

DEBRA, next big tax reform in Europe?

Simply Treasury

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).

Equity 52