medium · Private Equity accounting-flow

An acquisition of a company with $50M EBITDA is priced at a 10.0× multiple. The transaction uses $200M in debt, and the target's identifiable net assets at fair value are $220M. Calculate the resulting Goodwill to be recognized on the deal balance sheet.

  1. $100M
  2. $80M
  3. $300M
  4. $280M

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