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M&A: Calculate and negotiate the control premium
Acquisition price hinges on the premium. Too low = shareholders refuse. Too high = you overpay.
Corporate FinanceIntermediateCalculation
Your client InfraCo (infrastructure, listed) targets GridTech (electrical grids, listed).
GridTech pre-announcement:
- Share price: €32
- Shares: 40M
- Market cap: €1,280M
- EBITDA: €160M
- Net debt: €200M
Recent comparable transactions in the sector were closed at 25-40% premiums.
Given
| GridTech price | 32 € |
| GridTech shares | 40 M |
| EBITDA | 160 M€ |
| Net debt | 200 M€ |
| Low premium (comps) | 25 % |
| High premium (comps) | 40 % |
Question 1/5
Step 1. What is GridTech's implied Enterprise Value at current price (before premium)?
Your answerEnter a number in M€
M€
0/5
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M&A: The Complete Guide to Mergers & Acquisitions →