Two companies are considering the acquisition of Defenseless, Inc. Buyer A is a strategic buyer and Buyer B is a financial buyer. The following information pertains to Defenseless, Inc.
Sales = $15,000,000
Reported EBITDA = $2,300,000
Reported Executive Compensation = $500,000
Normalized Executive Compensation = $250,000
Reduced SG&A = $150,000
Calculate the pro forma EBITDA estimates that the strategic and financial buyers would each develop in an acquisitions analysis of Defenceless, Inc.?