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The Deal: Neiman Marcus Puts IPO Wheels in Motion

Neiman Marcus generated cash flow of $272 million in fiscal 2011, $260 million in fiscal 2012 and $233 million to date in fiscal 2013. That cash flow, the company said, has been used to pay off debt and dividends totaling $1.2 billion since October 2005.

With nearly $584 million in EBITDA as of July 28, 2012, Neiman Marcus would have an enterprise value of around nearly $5.1 billion if it traded at a multiple similar to Saks, which has an enterprise value of about 8.73 times EBITDA, according to numbers provided by Bloomberg.

Neiman Marcus has about $2.7 billion in long-term debt as of April 27 and about $69 million in cash.

The department store retailer operates 41 Neiman Marcus locations, two Bergdorf Goodman locations in New York City, 35 off-price locations under the Last Call banner and six Cusp fashion boutiques, as well as e-commerce sites.

Written by Richard Collings in New York

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