hard · Investment Banking ma-lbo
Acquirer buys Target in an all-stock deal. Acquirer P/E = 12.0x, Target P/E = 16.0x (at offer price). Acquirer has 100M shares, NI $300M. Target has 40M shares, NI $100M. Tax rate 30%, Amortization $0. Calculate breakeven pre-tax synergies.
- $54.2 million
- $47.6 million
- $33.3 million
- $25.0 million
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