Pricing the Chuck E. Cheese Deal Right

Sheridan Porter Blog

Using its state-of-the-art empirical valuation engine, FEV Analytics estimates the deal should price at $1.38B.
Private equity firm Apollo Global Management recently bid $1.3 billion including debt to purchase Chuck E. Cheese operator CEC Entertainment, which was unanimously accepted by CEC’s board.
FEV Analytics’ sophisticated algorithms calculated CEC’s fundamental economic value from its December 31, 2013 financial statements alone, and accurately priced in the firm’s market premium using its proprietary ‘premium analytics’ tools.
The main difference between the two valuation methods, according to CMO Sheridan Porter, is that one relies on expert opinion while the other (FEV’s) is data driven and repeatable.