medium · Private Equity paper-lbo
A sponsor is modeling a 'Buy-and-Build' strategy. They acquire a platform at 12.0x EBITDA and three add-ons at 7.0x EBITDA.
If the add-ons represent 40% of the final combined EBITDA, what is the weighted average entry multiple (ignoring synergies)?
- 10.0x
- 9.5x
- 11.0x
- 8.5x
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