What If?
May 1, 2007 12:00 PM
The deals assume 70 percent debt, 30 percent equity and a 25 percent buyout premium. ($ in millions, except per share data)
| Company | Price (4/04/07) | Buyout Price 25% Premium | Proposed Trailing EV/EBITDA | 5-Year IRR |
|---|---|---|---|---|
| Best Buy | $47.89 | $27,683 | 11.1 | 23.3% |
| Circuit City | 18.21 | 3,216 | 10.2 | 33.5 |
| RadioShack | 26.9 | 4,669 | 12.4 | 15.4 |
| Bed Bath & Beyond | 40.85 | 14,269 | 13.6 | 18.5 |
| Rent-A-Center | 27.72 | 3,693 | 10.4 | 27.7 |
| Tuesday Morning | 14.84 | 729 | 9.7 | 17.9 |
| Williams-Sonoma | 36.23 | 4,953 | 10.9 | 19.1 |
| Home Depot | 38.11 | 107,239 | 9.2 | 14.6 |
| Lowe's | 31.37 | 64,438 | 10.1 | 15.7 |
| Office Depot | 35.01 | 12,781 | 11.9 | 25.0 |
| OfficeMax | 52.92 | 5,090 | 11.6 | 24.5 |
| Staples | 26.07 | 22,974 | 12.7 | 24.7 |
| PetSmart | 33.13 | 5,903 | 12.1 | 21.6 |
| Source: Company reports; FactSet Research Systems Inc.; Bear, Stearns & Co. Inc. estimates | ||||
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