easy · Private Equity

A private equity firm is evaluating a 'Buy-and-Build' strategy. It acquires a platform for 10.0x EBITDA and then acquires three smaller add-ons for 6.0x EBITDA.

If the platform and add-ons are the same size, what is the blended entry multiple for the combined entity?

  1. 7.0x
  2. 10.0x
  3. 8.0x
  4. 6.0x

Sign up free to see the explanation and track your rank →

More Private Equity practice

KomFi Academy — Stop doomscrolling. Get KomFi.

Turn wasted screen time into verifiable competence.

KomFi Academy is a curated training platform with 67,000+ practice questions, 25,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks across the topics serious professionals study: GMAT, LSAT, MCAT, SAT, Investment Banking, Private Equity (LBOs & PE math), Private Credit, Quantitative Finance, Financial Accounting, Asset- Backed Securities, Volume Profile Analysis, Order Flow Trading, Market Microstructure, Volume Spread Analysis, Elliott Wave Theory, Volume-Price Analysis, and Public Offering Frameworks.

What's inside

Topics

View pricing · Read testimonials