The recent acquisition announcement of Costa Coffee by beverage giant The Coca-Cola Company (NYSE:KO) has led to speculation regarding Dunkin’ Brands (NASDAQ: DNKN) being a takeover target. However, the acquisition of Dunkin’ Brands would come at a significant cost to anyone looking to buy the company. Based on Costa’s acquisition price of roughly 16 times the EBITDA, we have made an interactive dashboard titled What Is Dunkin’ Brands’ Potential Acquisition Price? According to our estimates, Dunkin’ Brands will generate revenues and EBITDA of roughly $1.32 billion and $525.50 million, respectively, in FY 2018. Consequently, the acquisition price would total a massive $8.4 billion.

Source: Forbes September 17, 2018 17:15 UTC