This document provides an overview of the financing structure and impacts of a potential acquisition. It outlines two scenarios for the acquisition, with different levels of senior and subordinated debt. It then discusses who would decide on the financing structure, who would control the acquired company, and the potential impacts. Key points include the acquisition value and EBITDA, the debt levels and ownership percentages under the high and low scenarios, and how the decision makers and level of control could differ.

2. MBA HEC MONTREAL
APRIL 7, 2011

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19. Two scenarios : EV= 8 M$, EBITDA 1,5 M$, Debt 0 M$
High Low
Senior debt 3X 4,5 M$ 56,25 % Senior debt 2.0X 3,0 M$ 37,50 %
Subordonated 1X 1,5 M$ 18,75 % Subordonated - M$ -
6,0 M$ 75,00 % 3,0 M$ 37,50 %
Balance on sale 1,0 M$ 12,50 % Balance on sale 1,0 M$ 12,50 %
Equity 1,0 M$ 12,50 % Equity 4,0 M$ 50,00 %
Total 8,0 M$ 100 % Total 8,0 M$ 100 %
What are the impacts ?
Who decides?
Who controls?

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