The controlling partners of two private companies firms are planning to thwart a third offering round for a targeted organization, the European refreshment division of Cadbury Schweppes. As they hold up to have an interaction with the CEO, they think back to their presumptions on the contracted offer and assess the experiences that led to their valuation.
Total net cash interest, Net Total Debt, Net Senior Debt, EBITDA, Operating Cash Flow
CAPM model, Risk Free rate, Market rate of return, Beta
Required rate of return
Why would Lion do a deal with Blackstone? Why would Blackstone do a deal with Lion? What does each risk? What can each gain?
Is Orangina a good deal? It appears that Lion and Blackstone are paying full price. What basis might the Lion-Blackstone consortium have to justify it?
Determine the valuation for Orangina based on Exhibits 8a & 9b?