Comparable Company & Precedent Transactions 4 Review Later Lifesaver Inc., a producer of personal protective equipment, trades on the TSX Venture stock exchange at an EV/EBITDA multiple of 4.0x. From performing a precedent transaction analysis, you note that recent acquisitions of similar companies have transacted at an EV/EBITDA multiple of 6.Ox. The following is not a valid potential reason for this discrepancy: The presence of an implied minority discount (a discount due to a lack of control in the company when purchasing shares in the open market) in the 4.0x EV/EBITDA trading multiple The presence of a control premium within the EV/EBITDA multiple implied by the acquisitions Special purchaser considerations, such as synergies, being inherent in the precedent transaction multiples Multiples implied by precedent transactions are not relevant when considering publicly traded companies Page 4 of 25