M&A · Industrials · Operative Builders
Apollo Global Management, Inc. to acquire New Home Co Inc.
Announced Jul 23, 2021 · Closed Sep 8, 2021
Deal value$173MEV $338M
Premium85.0%To unaffected price
EV / Adj. EBITDA—0.7x EV / Revenue
ConsiderationAll cash$9.00 per share
Transaction
- Acquirer
- Apollo Global Management, Inc. (APO)
- Target
- New Home Co Inc. (NWHM)
- Buyer type
- Private equity
- Offer price per share
- $9.00
- Enterprise value
- $338M
- Status
- Closed Sep 8, 2021
Deal protections
- Break fee (target pays)
- $4.8M · 2.8%
- Reverse fee (buyer pays)
- $15.0M · 8.7%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- JPMorgan
- To the target
- Citigroup
- Citigroup fee
- $5.0M
Sector context · Industrials
- Comparable deals
- 34 in the prior 24 months
- Premium
- 85.0% vs. 34.5% sector median
- EV / Adj. EBITDA
- Sector median 12.5x
- Break fee
- 2.8% vs. 2.7% sector median
Timeline
- AnnouncedJul 23, 2021
- Tender offerAug 10, 2021
- ClosedSep 8, 2021
Valuation · fairness opinions
Discounted cash flow$6.00$9.20
Discounted cash flow$6.45$9.65
Precedent transactions$8.25$12.25
Future share price$4.80$8.50
Future share price$5.20$9.45
Offer $9.00
Implied value per New Home Co Inc. share by analysis, from Citigroup · DCF discount rate 11.3%–12.9%.