Hardest lateral technicals at EBs
Specifically in elite boutiques - I would think accretion dilution / LBO Q&A but would be grateful if the chat can share specific examples from experience
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here are some EB questions that are hard i remember prepping with
Company A has $400 of net income and trades at 20x P/E. Company B has $100 of net income and trades at 10x P/E. A acquires B in a 100% stock deal. B shareholders own 20% of the combined company, and the deal is 10% accretive post synergies. What are the required after-tax synergies and what premium did A pay?
PE buys Company A with $50M EBITDA at 8x and uses 40% debt. Company already has $80M of existing debt. Over six years, half the debt is paid down, IRR is 20%, and exit multiple is still 8x. By what percentage must EBITDA grow?
Company A has 40 shares outstanding, a $10 share price, and net income of $80. Company B has 50 shares outstanding, a $6 share price, and net income of $100. The deal is financed 100% with stock.
An acquirer trading at 12x P/E buys a target at 10x P/E in an all stock deal. What is the breakeven premium?
feel free to pm me for more
hi! do you have anymore questions i’m not too sure how to PM you im exactly like OP rn and i have no grounding in technicals :,,)
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