Talking about EBITDA multiples in M&A deal
Hi all, When discussing M&A deals/transactions in interviews, I commonly hear the importance of talking about EBITDA multiples (purchase price/EBITDA, etc.). My question - where do you find this information? On WSJ there's mostly info about method of payment, premium, purchase price, but I rarely see anything about EBITDA.
Thanks!!
The best source you can go off is from one of the party's press releases or SEC filings (if applicable or the relevant governing body for the respective financial market). Otherwise, you can find them in news sources, though it may not be 100% accurate (for example, you might read that Company A bought Co. B for $100 million, and that Co. B had sales of $90 million last year).
If you have access through school, Capital IQ has all this.
If not, if the deal has been formally announced, look on the investor section of the firms' websites. You want something labeled "merger presentation" or "presentation to shareholders" or something like that. There should be a high level presentation which will outline the high-level numbers of the deal and the synergies. Here is http://investors.suntrust.com/events-and-presentations/event-and-presen…</a">Suntrust's
You can also look through SEC filings for an 8-K (which hopefully will have a merger presentation listed as an attachment or ideally PREM14A (proxy statement). This should include a fairness opinion (listed under 'Opinion of Financial Advisor to ____" which will detail how the company was valued. Here is https://www.sec.gov/Archives/edgar/data/865436/000157104917006539/t1702…</a">Amazon -Whole Foods PREM14A
Consequuntur eaque cum perferendis. Recusandae excepturi veritatis fugit mollitia non libero. Placeat ut commodi cum accusantium omnis. Vel voluptatem est velit velit harum non at. Sit veritatis non omnis dolorem. Id voluptas enim qui dolores non ea aperiam.
Dignissimos provident nulla maxime. Magnam quae voluptas ratione autem autem facere. Quia natus quos fugit porro architecto consequatur. Voluptatem magnam voluptas quia dolorum non quas fugit quia. Quaerat id asperiores quia et aut ut quidem.
Quisquam iste inventore id quia id at fuga. Numquam perferendis ut iste. Perspiciatis asperiores maiores magni hic aperiam nesciunt. Dolorum libero sit eum unde et.
Quos commodi modi ducimus. Saepe accusantium velit illo quidem exercitationem laudantium.
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...