easy · Private Equity value-creation

When modeling a Buy-and-Build scenario, why is 'Multiple Arbitrage' often listed alongside 'Synergies'?

1. They both represent ways to create value through acquisitions that exceed the standalone costs.
2. Multiple arbitrage is simply the cost incurred in the process of achieving those synergies.
3. They are exactly the same underlying concept, and the two terms are used fully interchangeably in this context.
4. Both synergies and multiple arbitrage strictly require the use of high-yield debt financing to work.

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