The Twitter Buyout: Is Elon Musk a Madman or a Genius?
Brian DeChesare
MAY 4, 2022
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.
109 
Let's personalize your content