Calculating Ownership Structure Post-Merger
Does this look right? Will give SB's for helpful answers.
Sources: Buyer Equity: $20.0 million Rollover Equity: $5.0 Incentive Fee (paid by buyer): $2.0 Target Note (paid by target company to previous owners upon hitting benchmarks): $1.0 Total: $28.0 million
Uses of Funds: Proceeds to Target: 19.1 million Rollover Equity: $5.0 Incentive Fee: $2.0 Target Note: $1.0 Fees: $0.9 Total: $28.0 million
Buyer Investment: 20.0+2.0-0.9=$21.1 million EV: 20.0+5.0+2.0+1.0-0.9= $27.1 million Equity: 27.1-1.0= $26.1 million
Buyer Equity %: 21.1/26.1=80.8% Rollover Equity %: 5.0/26.1=19.2%