Case ID: 202090     Solution ID: 21985     Words: 1465 Price $ 75

Brazos Partners The CoMark LBO Case Solution

Case Solution

The accomplices of another midmarket buyout trust are chipping away at a buyout of a firmly held particular building organization. Albeit initially organized as a stock arrangement, they have understood that an advantage arrangement would be ideal from their perspective and are attempting to figure out what advantages it may hold for the venders, whose proceeding with inclusion in the organization is crucial for achievement. This case depicts the procedure of the bargain's expected tirelessness and the condition of the LBO business in the mid 21st century.

Excel Calculations

 Discounted Cash flow analysis

 Terminal Value Estimation

 WACC Estimation

 Cost of debt

 Cost of Equity

 WACC Calculations

 Return on Investment


Comparable Method 

 Enterprise Value of ModTech for 2000 using EBDITA Multiple

 Enterprise Value of ModTech for 2000 using Revenue Multiple


Tax Benefit

 PV @WACC (average 10%) 

 Total Value

 Total Value ( in $ M)

Questions Covered

1. What is the Intrinsic Firm Value of CoMark?

2. Is the price being offered “fair?”

3. Does CoMark have enough Equity Free Cash Flow to satisfy its debt obligations?

4. Which party is getting the best deal?

5. How important is the difference between a “stock deal” versus an “asset deal?”

6. Is a mezzanine loan at 20% better than the seller financing, for whom?