medium · Private Equity value-creation
A private equity platform acquires a bolt-on for $56M (7.0x EBITDA of $8M). After integration, the sponsor realizes $2M in annual cost synergies.
When the platform is eventually sold at a 9.0x multiple, what is the total enterprise value contributed by this specific bolt-on (post-synergies)?
- $56M
- $72M
- $34M
- $90M
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