What kind of deal is this and can you point me out to a good template?
I am working on a model for a small firm that is looking to purchase a majority share of a division of a publicly traded company. The problem is, I'm not sure how to structure it--it it an asset sale? LBO?
To clarify, let's say that PE Capital is looking to buy the Widget division of Newco. Newco is a publicly traded company. PE Capital would like to buy 81% of the Widget division through a combination of equity and 3-4 tranches of debt (senior, junior, etc.). What kind of template should I use?
How would you structure this deal? What are the various sheets I need for this model? I'm very new to all of this. Any comprehensive, overview/walkthrough help would be much appreciated. Please feel free to ask questions, as I probably did not provide all of the necessary information.
Thanks a ton.
Smells like LBO, but I think there are different tax implications vs. asset sale so I'm not entirely sure.
^ To that effect (LBO), what should I put in for current share price and such? There is obviously a share price for Newco, but not a separate share price for the Widget division.
Structurally, it sounds like an LBO, but I don't see how you can buy part of a division in a publicly traded company unless it will be spun out (at least partially).
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