easy · Private Equity & LBOs

When modeling a Buy-and-Build scenario, why is 'Multiple Arbitrage' often listed alongside 'Synergies'?

1. They both represent ways to create value through acquisitions that exceed the standalone costs.
2. Multiple arbitrage is the cost of achieving synergies.
3. They are exactly the same thing and the terms are interchangeable.
4. Because they both require the use of high-yield debt to be effective.

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