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
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