reply
by an member
6yrs ago
from Universidad Nacional de Educación a Distancia
in 11100 San Fernando, Cádiz, España
I would think in terms of debt/ebitda. And I would say around 2x, which is the maximum amount at which banks are willing to lend (at least here in Spain). It also depends, obviously on which company you are acquiring.
reply
by a searcher
6yrs ago
from Loyola University Maryland
in Atlanta, GA, USA
It depends on factors such as cash flow, CAPEX needs, asset intensiveness, etc... but I have seen structures as aggressive as 20% equity / 80% debt on acquisition value. As far as debt/ebitda, again, it depends on above mentioned factors but I would personally not go above 2.5x debt / ebitda.