M&A · Financials · Real Estate Investment Trusts
Ready Capital Corp to acquire Broadmark Realty Capital Inc.
Announced Feb 27, 2023 · Closed May 31, 2023
Deal value$787MEV $821M
Premium41.0%To unaffected price
EV / Adj. EBITDA—7.0x EV / Revenue
ConsiderationAll stock$5.90 per share
Transaction
- Acquirer
- Ready Capital Corp (RC)
- Target
- Broadmark Realty Capital Inc. (BRMK)
- Buyer type
- Strategic
- Offer price per share
- $5.90
- Enterprise value
- $821M
- Status
- Closed May 31, 2023
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Wells Fargo
- To the target
- JPMorgan
- JPMorgan fee
- $10.0M
- Wells Fargo fee
- $7.5M
Sector context · Financials
- Comparable deals
- 87 in the prior 24 months
- Premium
- 41.0% vs. 29.4% sector median
- EV / Adj. EBITDA
- Sector median 21.7x
- Break fee
- Sector median 3.6%
Timeline
- AnnouncedFeb 27, 2023
- Proxy filedApr 20, 2023
- Definitive proxyApr 20, 2023
- Shareholder voteMay 30, 2023
- ClosedMay 31, 2023
Valuation · fairness opinions
Trading comparablesJPMorgan$6.96$14.52
Trading comparablesJPMorgan$3.50$6.50
Trading comparablesJPMorgan$7.25$13.75
Trading comparablesJPMorgan$3.25$5.25
Trading comparablesJPMorgan$12.50$20.00
Discounted cash flowWells Fargo$4.37$5.73
Discounted cash flowWells Fargo$5.05$6.79
Discounted cash flowWells Fargo$11.45$14.91
Offer $5.90
Implied value per Broadmark Realty Capital Inc. share by analysis, from JPMorgan and Wells Fargo.