PayPal Buyout & Consortium Valuation Workbench

1. Transaction Parameters

1.04B Shares

Offer Price / Share $60.50

LBO Debt Leverage (x LTM EBITDA) 4.5x

PayPal LTM EBITDA: ~$5.80B $26.10B Debt

Equity Split (Advent / Stripe) 50% / 50%

Post-Deal Synergies & Margin $1.65B / yr

Braintree/Stripe volume routing uplift +45 bps margin

Year 5 Exit Multiple (EV/EBITDA) 11.0x

Debt Cost (Senior/Mezzanine Avg) 7.50%

IMPLIED EQUITY VALUE
$62.92B
@ $60.50 / share

ENTERPRISE VALUE (EV)

$60.22B

Less $2.7B Net Cash

ADVENT 5Y IRR

21.8%

2.68x MoIC

DEBT SERVICE (DSCR)

2.96x

$1.96B Ann. Interest

Consortium Equity vs Leveraged Debt

5-Year Sponsor IRR Sensitivity Matrix

Rows: Offer Price / Cols: Exit Multiple

Offer / Share	9.0x Exit	10.0x Exit	11.0x Exit	12.0x Exit	13.0x Exit

AUDITED

PayPal Board Counter-Offer Hurdles

At target $68.00/share, consortium equity increases by +$7.80B. Advent IRR decreases to 17.4% unless synergies expand to $2.25B.

Target Company PayPal Holdings (PYPL)

Buyer Consortium Stripe + Advent Int.

Per-Share Consideration $60.50

Total Enterprise Value $60.22B

Syndicated Debt (Senior+Sub) $26.10B (4.5x)

Advent Equity Check $18.41B (50%)

Stripe Equity Check $18.41B (50%)

Base EBITDA (LTM) $5.80B

Post-Synergy Year 1 EBITDA $7.45B

5-Yr Sponsor Return (MoIC) 2.68x