medium · Investment Banking ma-lbo

An acquirer is evaluating a target with $100.0M in LTM EBITDA. Strategic buyers expect $20.0M in after-tax synergies.

If the WACC is 10.0% and synergies grow at 2.0% perpetually, what is the 'Synergy Uplift' to the Enterprise Value?

  1. 255.0M
  2. 204.0M
  3. 166.7M
  4. 200.0M

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