New equity value post M&A
Hi,
Say A acquires 85% of B for a consideration of $200m.
pre transaction, B has no debt and $60m of cash on the balance sheet.
A ponies up $20m in cash (10% of the consideration) while the rest is financed with cash from B's balance sheet (20%), Debt (30%) and seller financing (40%, payable over 3 years).
What would the equity value be worth in such a scenario? (there is $20m in cash remaining on the BS post deal)
Thanks!
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