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Question 19 You want to purchase a high growth, cash flowing company for 10X EBITDA. Last year's EBITDA was $2,000,000. You want to purchase the

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Question 19 You want to purchase a high growth, cash flowing company for 10X EBITDA. Last year's EBITDA was $2,000,000. You want to purchase the firm with the help from a Private Equity company and continue to grow the revenue and EBITDA at 25% per year. Unfortunately, during the following 5 years after you and the PE firm purchased the firm, the revenue and EBITDA growth was only 5% per year. What would you purchase the company for? What would you sell the company for in 5 years a multiple expansion? ssuming no EBITDA

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