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.
Discounted Cash flow analysis
Terminal Value Estimation
Cost of debt
Cost of Equity
Return on Investment
Enterprise Value of ModTech for 2000 using EBDITA Multiple
Enterprise Value of ModTech for 2000 using Revenue Multiple
PV @WACC (average 10%)
Total Value ( in $ M)
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?