So I recently interviewed for an IB and they asked the question "what multiple was the deal done at?". I was lucky that my deal was for a company that was unprofitable so I could use EV/Rev and since the company sold for ~$350mm with $100mm rev it was easy to simplify it at 3.50x EV/Rev to get by.
Since then I've been looking at American Tower's acquisition of CoreSite Realty in 2021 and looked through the Recommendation Statement on EDGAR (here). They eventually mention that the company would be acquired for $170 a share and showed the LTM and NTM multiple analysis based on the peer group, but they at no point do they mention what the implied EV/EBITDA or P/AFFO multiple is given the acquisition price of $170.
So my question is how am I supposed to figure out the implied multiple on the deal when they:
- Did not publish the EV of the deal
- Did not publish the FMV of debt on the deal (if they had you could reverse engineer it from the share price)
- Did not simply publish the implied multiples related to a purchase price of $170
If anyone has any advice I would greatly appreciate it because I am very frustrated - I no longer have access to CapIQ or BBG so I cannot use them to retrieve the multiples.
Thanks for your time and wisdom in advance,
Big Kahuna
Perhaps I'm missing something, and apologies if that's the case, but...
(A) Take Private Price x Diluted Shares Outstanding
+
(B) Net Debt
(+ / -)
(C) Other Bridging Items
There isn't anything here that you can't find in annual / quarterly filings, and this is a very, very standard task on the desk.
Apologies though if I've missed something here!
Thanks for the quick reply. I was originally under the impression that when putting together an offer to buy the company that bankers may receive interim financials that they can more accurately assess the company but having typed that out, I now see that would make ZERO SENSE.
In response to the other items:
(B) Would Net-debt need to be updated to FMV of net-debt?
Thanks again for the help.
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