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Watts Water Technologies Acquires Bradley, Expects EBITDA Margin Accretion By 2027

Benzinga

The transaction value comes to around $268 million after adjusting for the estimated net present value of expected tax benefits of about $35 million. Watts Water Technologies Inc (NYSE: WTS ) penned a deal to acquire Bradley Corporation for $303 million.

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Post Holdings to Acquire Rachael Ray® Nutrish®, Nature's Recipe® and Other Select Pet Food Brands from The J.M. Smucker Co.

Benzinga

The transaction is expected to be leverage neutral; upon closing of the transaction, Post's pro forma net leverage ratio* is expected to be approximately 5.2x. Additionally, Post expects the transaction to result in a tax benefit to Post with a net present value of approximately $120 million.

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Issues faced when valuing a declining company

Andrew Stolz

Estimate Terminal Value – Terminal Value is then estimated either by using a terminal exit multiple (usually an EBITDA multiple) or with a Terminal Growth Rate ( Gordon Growth Method).

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M&A Terms Every Business Owner Should Know

Class VI Partner

Discount Rate Discount Rate refers to the rate at which a stream of future cash flows is discounted to determine Net Present Value. EBITDA Multiple EBITDA Multiple refers to the multiple of EBITDA used to determine a company’s enterprise value.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

These ratios, like the EBITDA multiple, compare a company’s financial performance (EBITDA, revenue, etc.) to its market value. These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value.

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

This value is widely referred to as the “Net Present Value” (NPV). . which produces a Net Present Value of the Terminal Value of: $74 million. . So the Terminal Value here is three times as large! Calculate the Terminal Value. . Discount the Terminal Value. . Growth Rate.