You work for a levered buyout firm and are evaluating a potential buyout of Boogle Inc. Boogle's share price is $18, and it has 3 million shares outstanding. You believe that if you buy the company and replace its dismal management team, its value will increase by 50%. You are planning on doing a levered buyout of Boogle and will offer $25 per share for control of the company. Assuming you get 50% control, what will your gain from the transaction be? Show your calculations.
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Question

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The Answer of You work for a levered buyout firm and are evaluating a potential buyout of Boogle Inc. Boogle's share price is $18, and it has 3 million shares outstanding. You believe that if you buy the company and replace its dismal management team, its value will increase by 50%. You are planning on doing a levered buyout of Boogle and will offer $25 per share for control of the company. Assuming you get 50% control, what will your gain from the transaction be? Show your calculations.
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You Work for a Levered Buyout Firm and Are Evaluating