medium · Investment Banking ma-lbo
A target company has 200M of LTM EBITDA. A strategic buyer estimates it can achieve40M in pre-tax cost synergies.
If the buyer pays a 10x multiple on 'Post-Synergy' EBITDA, what is the effective multiple on 'Pre-Synergy' EBITDA?
- 12.0x
- 14.0x
- 8.0x
- 10.0x
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