medium · Private Equity & LBOs
A platform company with $40M EBITDA is valued at 10.0x. It acquires an add-on with $10M EBITDA for 7.0x, including $5M in one-time integration costs.
What is the effective post-integration entry multiple for the add-on?
- 7.00x
- 6.50x
- 10.00x
- 7.50x
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?