The Twitter Buyout: Is Elon Musk a Madman or a Genius?
Brian DeChesare
MAY 4, 2022
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. Twitter – Financing/Loan Document for LBO (PDF). Leverage and Debt Terms: The leverage here is exceptionally high compared with any normal leveraged buyout.
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