13. Private Equity Valuation (LO2, CFA2) Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $28 million. Robbin knows that these similar deals have recently closed:

Company EBITDA Valuation Shell Technologies $20 million $96 million Layer Company $36 million $165.6 million Case Partners $30 million $150 million Based on the above transactions:

a. What is the average price multiple?

b. Using the valuation multiple from part (a), what is the estimated value of Nest Corp.?