medium · Private Equity & LBOs
A sponsor acquires a platform business for 10.0x EBITDA and later acquires an add-on for 6.0x EBITDA. The platform has EBITDA of $40 million and the add-on has EBITDA of $10 million.
What is the post-acquisition blended entry multiple for the combined entity?
- 9.2x
- 9.0x
- 8.0x
- 10.0x
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