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M&A / LBO⚗ Includes simulator

Acquisition Cost

Acquisition Cost is a concept that clarifies deal structure, leverage, and exit value creation.

Deep dive

Acquisition Cost helps you test whether the transaction creates value after integration and debt service. Helpful formula: define scope clearly and compare two scenarios before deciding.

Key formula

Helpful formula: define scope clearly and compare two scenarios before deciding.

Real-world examples

M&A case: Acquisition Cost

An acquirer models deal impact on leverage and returns over five years. Acquisition Cost is used as the anchor to compare conservative and ambitious scenarios.

ebitda_eur:: 4540000
entry_multiple:: 7
debt_ratio:: 58%
hold_period_years:: 5

Pitfalls to avoid

Overstating synergies without a concrete capture plan.
Underestimating refinancing and covenant pressure post-close.

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Related terms

M&A / LBO

Carve-out

Carve-out is a concept that clarifies deal structure, leverage, and exit value creation.

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Club Deal

Club Deal is a concept that clarifies deal structure, leverage, and exit value creation.

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Covenant

Covenant is a concept that clarifies deal structure, leverage, and exit value creation.

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Covenant Lite

Covenant Lite is a concept that clarifies deal structure, leverage, and exit value creation.

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Debt to EBITDA

Debt to EBITDA is a metric that measures deal structure, leverage, and exit value creation.

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Dividend Recap

Dividend Recap is a concept that clarifies deal structure, leverage, and exit value creation.