easy · Private Equity value-creation
A 'Buy-and-Build' strategy often relies on 'Multiple Arbitrage'.
Which scenario best describes this effect?
- Reducing the cost of goods sold to increase the EBITDA margin
- Acquiring small add-ons at 5x EBITDA and exiting the combined platform at 10x
- Refinancing senior debt to reduce the blended interest rate
- Selling a portfolio company to a strategic buyer for a 20% premium over trading
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