medium · Private Equity value-creation
A 'Platform' company is acquired for 160 million (8.0× EBITDA of 20 million). The sponsor then completes three 'Add-on' acquisitions totaling 15 million in EBITDA for a combined cost of 75 million (5.0× EBITDA).
What is the blended entry multiple for the combined entity?
- 6.5×
- 7.2×
- 8.0×
- 6.7×
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