medium · Private Equity

A buyer is evaluating a 'Platform' company with $20M EBITDA valued at 10.0x. The buyer plans to execute $3 'Add-on' acquisitions, each with $5M EBITDA valued at 6.0x.

What is the 'Blended Entry Multiple' for the combined entity?

  1. 8.00x
  2. 8.29x
  3. 7.50x
  4. 9.00x

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