hard · Private Equity & LBOs
A sponsor is modeling a 'Buy-and-Build' strategy. They acquire a platform at 12.0x EBITDA and three add-ons at 7.0x EBITDA.
If the add-ons represent 40% of the final combined EBITDA, what is the weighted average entry multiple (ignoring synergies)?
- 10.0x
- 9.5x
- 11.0x
- 8.5x
Sign up free to see the explanation and track your rank →
More Private Equity & LBOs practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?