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Precedent Transaction Analysis: Olive Company Inc. purchased Canine-Safe Chocolate Inc. and details of the transaction are below: $30 per share for Canine-Safe Chocolate Inc.s 520,000

Precedent Transaction Analysis:

Olive Company Inc. purchased Canine-Safe Chocolate Inc. and details of the transaction are below:

  • $30 per share for Canine-Safe Chocolate Inc.s 520,000 diluted shares outstanding (No calculations needed for dilution effect)
  • $6 million in cash
  • Olive Company Inc. will take on all of Canine-Safe Chocolate Inc.s debt totaling $10 million
  • Canine-Safe Chocolate Inc.'s EBITDA is $2 million

What is the transaction EBITDA Multiple?

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