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?
- 8.00x
- 9.33x
- 8.33x
- 9.00x
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