Average multiples of EBITDA in the May-July span inched up slightly to 10.76 in response to energized deal flow and healthy transaction prices. Pricing was expected to rise due to the easing of financing requirements placed on buyers. Stronger pricing was also evident in the expanding premiums over target stock prices in the same period. Premiums one week and one day prior to deal announcement reached their highest levels since late 2003, although the four-week premium contracted slightly to 31.67 from 33.90 in the first quarter of 2005. (c) 2005 Mergers and Acquisitions Journal and SourceMedia, Inc. All Rights Reserved. http://www.majournal.com http://www.sourcemedia.com
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