medium · Private Equity value-creation
A platform company with $40M EBITDA is valued at 10.0x. It acquires an add-on with $10M EBITDA for 7.0x, including $5M in one-time integration costs.
What is the effective post-integration entry multiple for the add-on?
- 7.00x
- 6.50x
- 10.00x
- 7.50x
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