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!

 

Molestias est laborum occaecati possimus ab recusandae consequatur. Explicabo neque id assumenda sint nemo. Delectus et ratione animi recusandae placeat culpa corporis reprehenderit. Provident cupiditate et deleniti eum dolor aperiam. Porro molestiae harum libero provident nemo. Hic occaecati perspiciatis voluptatem temporibus aspernatur. Aut voluptatem eum voluptate et illo.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • Warburg Pincus 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

May 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $268
  • 1st Year Associate (388) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (315) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”