1. Private Equity Valuation (LO2, CFA4) FRS Capital Advisors, a private equity firm, is considering purchasing Tom’s Auto, a private company. Tom’s EBITDA is $4.1 million, and FRS has collected information on two similar transactions. Information on these comparable purchases follows:

Company EBITDA Valuation Tim’s Auto Nation $2.5 million $14.50 million Bob’s Imports $5.4 million $30.24 million What value should FRS assign to Tom’s Auto?