What You'll Learn
- Model the full transaction financing structure (Debt + Cash + Equity).
- Calculate post-merger EBITDA multiples compression.
- Quantify strategic premium limits to prevent equity value destruction.
Lesson Overview
Acquisitions are games of mathematical leverage. Master transaction pricing, EBITDA multiples compression, synergy equity payoffs, and post-acquisition debt amortization calculations.
Your interviewer says: "Our client, a telecom conglomerate with $500M in EBITDA trading at an 8x multiple, wants to buy a regional fiber operator with $50M in EBITDA trading at 12x. Post-merger, we can secure $10M in cost synergies. What is our maximum purchase premium to prevent EPS dilution, and how does the combined entity's multiple compress?"
Why This Matters for Consulting Interviews
MBB firms advising major corporate boards test your capacity to balance complex quantitative multiple arithmetic with clear strategic recommendations.
Prerequisites
- Post-Merger Synergies
- Corporate Valuation
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