medium · Private Equity value-creation
A buyout fund acquires a platform for 100M (10.0× EBITDA). It then acquires three 'add-ons' for a total of 168M (7.0× EBITDA).
If the combined entity exits at a 9.0× multiple, and 10M in synergies were achieved, what is the value created purely from 'multiple arbitrage' on the add-ons?
- 33.6M
- 90M
- 48M
- 168M
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