hard · Private Equity
A PE firm is executing a roll-up of three dental clinics. Clinic 1: $5M EBITDA @ 6.0x. Clinic 2: $3M EBITDA @ 5.0x. Clinic 3: $2M EBITDA @ 5.0x. If the combined 'NewCo' platform can be exited at 8.0x EBITDA after achieving $2M in synergies, calculate the 'Multiple Arbitrage' component of the total gain.
- $41M
- $25M
- $80M
- $20M
Sign up free to see the explanation and track your rank →
More Private Equity practice
- If the actual SOFR rate drops to 0.50%, what is the total interest rate paid by the borrow
- In a European (whole-fund) waterfall, a fund has called $100… — How much 'carried interest
- What is the fund's Total Value to Paid-In (TVPI) multiple?
- What is the new effective conversion price for the growth equity investor?
- What is the maximum debt allowed if the leverage covenant is set at 5.0x Covenant EBITDA?
- If EBITDA remains exactly the same and no debt is paid down, which lever is the sole sourc
- If net debt remained constant at $200M throughout the hold, what was the primary source of
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on