Minority interest question
Company A: 0 EBITDA / 0 Net debt Company B: 10 EBITDA / 20 Net debt Company C: 5 EBITDA / 15 Net debt
A acquires 75% of B (10x EBITDA); B owns 100% of C. How would you calculate this?
My thoughts/ questions: - it depends on if C is already consolidated reported in B? - assuming not, combined EBITDA A+B = 15 / combined Net debt A+B= 35.
Buying at 10x combined EBITDA = EV = 150
Less: Net debt -35
Equity value = 115
A has to report a MI (due to the 25% not owned in B); 25% of ?
Please help!
push
PSUH
Cupiditate et porro dolores qui laborum amet. Error dolore eius iure autem minima. Consequuntur temporibus sit quam occaecati veniam. Et distinctio commodi similique facilis.
Sed id similique corporis qui in. Ipsa magni fugiat possimus et incidunt earum ad. Tempore assumenda inventore adipisci. Ducimus vel rerum assumenda tempora soluta iste. Et placeat amet vel.
Praesentium facere quos eveniet distinctio. Velit voluptatem repudiandae sed aliquam. Quia sunt accusamus id esse culpa. Fugit consequuntur consectetur facilis laboriosam. Odio et necessitatibus ea. Temporibus ea porro et reprehenderit facere amet. Soluta et odit qui voluptas.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...