easy · Private Equity value-creation
A private equity firm is evaluating a 'Buy-and-Build' strategy. It acquires a platform for 10.0x EBITDA and then acquires three smaller add-ons for 6.0x EBITDA.
If the platform and add-ons are the same size, what is the blended entry multiple for the combined entity?
- 7.0x
- 10.0x
- 8.0x
- 6.0x
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