Reynolds Holding

JUNE 3, 2024

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

Equity EBITDA Debt Financing Equity Financing 45

Scott Mashuda

NOVEMBER 13, 2023

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

EBITDA Equity Marketability Debt Financing 89

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.

EBITDA 111

EBITDA Start-ups Finance Equity 111

Simply Treasury

AUGUST 2, 2022

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

Equity Risk Premium Banking Finance 52

Class VI Partner

AUGUST 4, 2022

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 debt financing for acquisitions during a period of market volatility.

EBITDA 52

EBITDA Debt Financing Equity Marketability 52

Benzinga

JUNE 16, 2022

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.

EBITDA 40

EBITDA Debt Financing Dividends Finance 40

Musings on Markets

MARCH 8, 2023

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.).

Dividends 94

Dividends Start-ups Finance Corporate Finance 94