Is the payment to the seller an appropriate amount

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Question: Is the payment to the seller an appropriate amount? If not, why? If so, what is the source of value created that might justify the acquisition premium?

Intercontinental Capital, Ltd. (ICL) believes that it could increase the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of Consolidated Supply S.A. (CSSA) by 350 basis points (bp) through improvements in operations and product mix. What is the impact of this savings on the value of CSSA and/or the return to ICL?

Is this deal structure realistic in the sense of being attractive to the senior lenders, the investors in the senior notes, and subordinated debt? What risk rating would you attribute to the senior debt? What is the expected return to Deutsche Bank?

Is this deal structure attractive to the equity investors?

What modifications can you suggest to improve the deal from the standpoints of the lenders and/or the equity investors?

How should Maria Ober reply to ICL?

Do you have maybe excel or sth with the calculations?

Reference no: EM133633517

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