Fintech M&A Deal Structure & Synergies Simulator

1. Valuation & Asset Split Step 1

Target PayPal EBITDA $5.20B

$ Billion

EV / EBITDA Valuation Multiple 11.5x

Asset Carve-out: Braintree/Gateway vs Consumer 40% Stripe / 60% Advent

Stripe (Braintree/APIs) 40%

Advent (Venmo/Consumer) 60%

2. Synergies & Margin Engine Step 2

OpEx / Infra Cost Synergies 14%

Blended Take-Rate Compression -8 bps

LBO Total Debt Financing % 55%

Consortium Capital Stack & Valuation Breakdown Live Model

Enterprise Value (EV)

$59.80B

Based on 11.5x EBITDA

Total Debt Package

$32.89B

5.8x Leverage Multiple

Advent PE Sponsor Equity Check

$16.15B

Stripe Strategic Equity / Cash Outlay

$10.76B

Financing Structure & Equity Allocation 100% Capitalized

Sr Debt $20.9B

Mezz $9.0B

PIK $3.0B

Advent $16.15B

Stripe $10.76B

Senior Secured (35%)

Mezzanine (15%)

PIK Notes (5%)

Advent Equity

Stripe Strategic

Pro Forma Synergized EBITDA $5.93B

Annual Debt Service / Interest $2.47B

Interest Coverage (DSCR) 2.40x

Combined Stripe+PayPal GPV $2,550B

Advent Target 5-Yr Net IRR 21.8%

Est. MoIC (Multiple on Invested Cap) 2.68x

3. Antitrust & Regulatory Gauge DOJ / FTC

Merchant Gateway HHI Delta +420

Moderate-High (DoJ / FTC Review Required)

Stripe acquiring Braintree creates concentrated payment gateway power in North America and EU.

4. Deal Summary Memo

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