Calculate the pro forma ebitda estimates

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Two companies are considering the acquisition of Target Company. Buyer A is a strategic buyer and Buyer B is a financial buyer. The following information pertains to Target Company:
Sales £ 28,000,000
Reported EBITDA £ 4,500,000
Reported executive compensation £ 1,000,000
Normalized executive compensation £ 500,000
Reduced SG& A from eliminating duplicate general and administrative functions £ 600,000

Problem 1: Calculate the pro forma EBITDA estimates that the strategic and financial buyers would each develop in an acquisitions analysis of Target Company.

Reference no: EM132931011

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