Question
projections for the EBITDA of Company A are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 EBITDA $2.0 $3.0 $3.5 $4.0
projections for the EBITDA of Company A are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 EBITDA $2.0 $3.0 $3.5 $4.0 $5.0
cost of capital is 20%.
Your investment banker shows you the EBITDA multiples for the following comparable companies: Company x 5.0x Company y 5.50x Company z 6.0x
A) Given the above information what is the price that you would like to offer to Company A shareholders?
B) what price would the shareholders in Company want?
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Blood Audit
Authors: Edward S Blythe
1st Edition
1480180394, 978-1480180390
