What a bid at each price buys a sponsor
The chart illustrates how different bid prices for a potential take-private transaction correspond to projected base-case Internal Rate of Return (IRR) and stock price premiums relative to a $49.55 closing price. Deal quality ranges from 'Steal' (IRR >30%) to 'No' (IRR <10%).
| Label | Value shown on the chart |
|---|---|
| Steal | IRR >30% |
| Great deal | IRR 25-30% |
| Good deal | IRR 20-25% |
| Fair deal | IRR 15-20% |
| Stretch | IRR 10-15% |
| No | IRR <10% |
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