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Determining the enterprise value jvg inc

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JVG Inc., is interested in acquiring Hats 'R' Us, Inc. JVG's CFO has examined similar acquisitions that have occurred in the industry and has found that in the recent past acquirers have, on average, offered an enterprise value that is 6x target's forward EBITDA. If Hats 'R' Us' current EBITDA is $1.5m and it has $3.45m in debt, how much should JVG offer (per share) for Hats 'R' Us'? Assume that Hats 'R' Us' EBITDA is expected to grow at 5% indefinitely, and that it has 300,000 acquisition shares.

Reference no: EM132509500

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