medium · Private Equity value-creation

A private equity sponsor acquires a platform business with $50.0M of LTM EBITDA at a 10.0x entry multiple. Simultaneously, the platform completes the acquisition of a bolt-on company generating $10.0M of EBITDA for a purchase price of $60.0M.

What is the blended pro-forma entry multiple for the combined entity?

  1. 8.00x
  2. 9.33x
  3. 8.33x
  4. 9.00x

Sign up free to see the explanation and track your rank →

More Private Equity value-creation practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 92,240+ practice questions, 30,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials