Using the exam handout, assume Conglomerate Co sells Divisio…
Using the exam handout, assume Conglomerate Co sells Division C in a tax-free transaction on 12/31/2026 for $850 and the proceeds from the sale immediately go to Conglomerate Co’s cash balance. If Conglomerate Co’s share price remains at $35 per share as of 12/31/2026, what is the implied 2027E EBITDA multiple? Assume there are no changes in the shares / options / RSU / Convertible Debt. Remember that after the divestiture, Conglomerate Co will remain a standalone company. Round to the nearest 0.5x.
Read DetailsUsing the exam handout, assume Conglomerate Co wants to sell…
Using the exam handout, assume Conglomerate Co wants to sell Division C in an RMT transaction. It meets all of the IRS requirements to do so. Assume Division C is valued at the median of the Division C competitors on an Enterprise Value / 2026E EBITDA multiple basis and has no debt or cash. How many of the Division C competitors would be possible candidates for RMT partners?
Read Details