Initial position: The management of Austrian PIERER MOBILITY AG (ex KTM INDUSTRIES) intends to acquire...
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Initial position: The management of Austrian PIERER MOBILITY AG (ex KTM INDUSTRIES) intends to acquire 100% of Dutch ACCELL Group retroactively as of January 1, 2022.(Balance sheet per 31.12.2021)
As an external M&A advisor your are engaged to develop an attractive financial structure of the deal.
Create the financial structure of the deal and maximise ROE for year 1 (2022, same numbers as 2021) presuming
- PIERER places a counter offer to the bid of KKR at the same offer price. - PIERER's financial strategy stipulates a minimum equity ratio of 35%. - Possible acquisition loan: no repayment in year 1, interest rate = financial cost 2021 - Future development of both companies corresponds with the latest financial statements (FC 2022 = A 2021). - Synergies: Sales: +5% Cost: -3%
Key criteria:
1) Calculation Purchase Price ACCELL 2) Minimum Equity ratio consideration 3) Debt capital consideration 4) Synergies 5) Maximising ROE
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