medium · Private Equity paper-lbo
A sponsor executes a 'buy-and-build' strategy. The platform company was acquired for 10.0x EBITDA. Three add-ons are then acquired for 6.0x EBITDA.
If the combined entity has $50M of EBITDA ($20M from platform, $30M from add-ons), what is the effective blended entry multiple?
- 6.0x
- 7.6x
- 9.2x
- 8.0x
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