medium · Private Equity value-creation
A company is acquired for 8.0x EBITDA. The LTM EBITDA is 40M, and the company has20M in cash and $140M in total debt.
What is the equity purchase price?
- $180M
- $160M
- $320M
- $200M
Sign up free to see the explanation and track your rank →
More Private Equity value-creation practice
- What is the Equity Value of the company?
- Why might the 'Trade Sale' yield a higher valuation?
- What is the target's re-levered beta?
- If the cost of debt is 6% and the tax rate is 25%, what is the total value of the Tax Shie
- Why might the conglomerate's market capitalization be lower than the SOTP value?
- A SaaS company has an ARR of $40M that is growing at 50% per… — According to the 'Rule of
- If the platform and add-ons are the same size, what is the blended entry multiple for the
- What is the 'Normalized EBITDA'?