Module II· Precedent TransactionsIntermediate
Question
How do you calculate the deal enterprise value from the data disclosed in a press release?
Answer
Standard calculation
Deal Value (equity purchase price) + Net Debt at Closing + Minority Interests at Closing − Cash Bridge Adjustments = Deal EV.
Deep diveShow more details
Example
A press release states 'acquisition for $800m' (equity purchase price). Pre-deal net debt $150m, pension liability $30m → Deal EV = 800 + 150 + 30 = $980m. Pitfall: press releases often quote only the equity value ('$800m acquisition'), not EV. Junior mistake: 800 / target EBITDA as the multiple — wrong, because it ignores net debt. Always use EV / EBITDA.
Pitch tip
On precedent-transaction slides, show the deal-EV bridge ('Equity Purchase Price + Net Debt + Pension + Minority = Deal EV') — the senior looks for it.