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John is considering the exit possibilities for an existing investment in a construction tool manufacturer that was acquired three years ago at a multiple of

John is considering the exit possibilities for an existing investment in a construction tool manufacturer that was acquired three years ago at a multiple of 6 times EBITDA. John noted that market conditions have improved and that companies operating in a similar business trade at an average multiple of 8.5 times EBITDA. However, based on analyst forecasts the market is expected to further improve within the next two years because of the fast-increasing demand for tools from the construction sector

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