203375 MOU

Questions
E) Reorganisation of the equity of a company Answers
E) Setting up Joint Ventures with another company C
D) Describing the financial control over a company A
E) Understanding
concerning future equity how change
and why some strategic decisions are taken D
E) In the maturity period of a business E
D) Creating a start-up company E
E)
E) The EBITDA disappereance
– change inofworking a company capital A
E) Only the assets of the target B
E) Will be repaid at the same time as the senior debt B
E) What is the price ? D
E) Never used as too risky D
E) Only Dividends C
The TARGET company has been bought
E) transfer of control and / or ownership of a business by a HOLDING in december 2017. The forecasts of E
TARGET
A company are as
hasforfollows
a registered(in millions euros):
capital of Sales 209 (-4% compared to previous year); Purchases E
E)
160.5; Cash-out
Wages the shareholders
27; Depreciation of 10.000
6.7; EBIT the14.8;
shareswhich
company
Profit
of 10€isnominal.
before sold
tax
Mr X has subscribed 7.000
14.8;toIncome Tax 4.9; euros
Net Profit
shares
A companyat the creation
hasChange of
a registered the company.
capitalcapital A Private
of 14.000 Equity fund plans invest 450.000 to take
9.9;
E)
a10.000
partCapex
Aof 8.4;
Decrease
the in the
capital. in working
multiple
Among thesefor -1.0shares
the valuation
450.000 (meaning of 100€
of300.000 there
the company
nominal.
isbea used Mr X,inthe
decrease theisthe
founder,
workinghas D
capital); shares
Change subscribed
in Mid&long at thetermcreation of euros,
financial the
debt company
0. What 5iswill
years
the ago, and
amount
forhe
of the
subscription
waiting
cash flowfor ainrate
an
available C
increase
E) return
of To findin
oncapital,
mainly and
the 150.000
his investment strenghts
of 15%to&purchase
aweaknesses
year. The shares
of afrom
value Mrshares
business
of the X. After of these
Mr X nowtransactions,
is: the fund
for
willdebt
hold service?
25% of the company’s capital. What was the value of the company that served as a basis A
A)
D) 2.815.900
Purchase
The holding
A) 5,4 ofeuros
Company the company
« Newcoby » isexternal
owned managers,
at 90% parassociated
Mr X. Newco withhas anbought
investora company called
for
B)
A
E)
« theA
Target deal
1.400.000
company generic
» for? aterms
has aeuros
registered
price for
of LBOs capital
2.000.000 of 7.000
euros, shares
financed byof 100€
800.000 nominal.
euros Mr
of X bought
equity, and5.000 shares
1.200.000 of D
B)
E)
A) 7,2
Purchase
600.000 ofeuros
ayears
euros company by aexternal managers, associated with an investor
C)
from
Senior
C) 1.000.000
his father,
debt.
14,8 5 2
years ago,
later, theat price
holding per share
company of
is 120
sold €.
for Aa Private
price ofEquity
2.000.000fund has
euros. just entered
What is the
The
B) holding
Between Company
600.000 «and
Newco » is owned
1.200.000 at 90% par Mr X. Newco has bought a company called A
D)
the
amount
D)
«
2.011.357
capital
Target 9,9 of of the
the
»not
for
euros
company
acapital
price gain
of by
realised
1.000.000 byeuros
subscription Xto: a capital
Mrfinanced
euros, increase
by 400.000 (dedicated
euros of equity,to this
andfund).
600.000Theoffund
C)
E)
has It is
invested possible to say D
A)
E)
Senior
What
D)
2.000.000
9,2debt.
is the
1.200.000 2900.000
amount euros
euros in value
euroslater,
years of thethe
this capital
distributable
increase.
of « profit
Target is Mr
in»the now X has thus now
case1.200.000
describedeuros,
a stakeholding
in thethe
in the capital
attached Table1: company of the
company
B)
has 700.000 of
1.080.000 : euros
euros of equity, 300.000 euros of senior debt. What is the valuation of the stake of E
A)
E)
A) 35.500
1.800.000
More than?euros50%
C)
Mr
B) X 0in Newco
36.500 E
B)
D)
A) It810.000
is not possible
1.280.000 eurosto say
euros
C)
C) 38.000
6.33% B
E)
B)
D) It is not possible
630.000
36.000 euros to say
D)
C) 71,4%
E)
E) 0360.000 euros D
D) 7,59%
It is not possible to say B
E) 1.000.000 euros
A