medium · Private Equity value-creation

An analyst uses a SOTP (Sum-of-the-Parts) valuation for a conglomerate. The 'Industrial' segment has $60.0M EBITDA and trades at a 9.0× peer multiple. The 'Software' segment has $15.0M EBITDA and trades at an 18.0× multiple.

If there is a 10% 'conglomerate discount' applied to the segment total, what is the adjusted Enterprise Value?

  1. $675.0M
  2. $891.0M
  3. $729.0M
  4. $810.0M

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