As per the factsof the case it has to be decided that which strategies are going to be undertaken by the investors in order to make an offer that will be based on the financial investor’s IRR, the method of payment that is going to be adopted and the price of that is going to be paid. Hence, as per the exhibits, the workings have been performed based on the Buyout offer and the Buyout Valuation.
The financial investor will have to make a decision regarding the internal rate of return of these seven strategies. The respective IRRs have been calculated as per the exhibits and the strategy, which is reflecting a higher IRR, will have to be chosen in order to be proceeded. Hence, if the Buyout Valuation and Buyout Offer are taken into consideration, then among the seven strategies the sale and leaseback strategy will be chosen.
The reason behind this is that the first strategy is showing an IRR greater than 15% and this will have the ability to keep the shareholders satisfied due to the returns over and above the investments they have made. In addition to this, the investors will be able to generate also from the sales and leaseback approach.Valuation And Corporate Finance Transactions Case Solution
However, the multiple EBITDAs have also been taken into consideration as well as the equity value, the balance sheet, the income statement and the statement of cash flows. Hence, by following all the steps performed in the case, the investors will have the ability to value the corporate transactions appropriately.........................
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