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QUESTION 7 15 points The majority of company valuations today are based on multiples of revenues or EBITDA Using the following data please state the

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QUESTION 7 15 points The majority of company valuations today are based on multiples of revenues or EBITDA Using the following data please state the company valuation for each of the scenarios below Sano subscription Revenue 4x multiple Tech Enabled Service Revenue 1.5x multiple Maintenance Revenue 2x multiple Traditional Service Revenue fx multiple Positive EBITDA 18x multiple a. Company A has a mix of Tech Enabled and Traditional Service. The Tech Enabled Services total $4,000,000.00 annually and the Traditional Service totals $1,500,000.00 b. If the same company in "a" above had annual EBITDA of $750,000.00, which would be the better valuation? c Company B has high growth SaaS revenue of $10,000,000.00 and Maintenance Revenue of $4.500,000.00. It also has annual operating EBITDA of -$350,000.00. Based on these facts would an offer of $31,000,000.00 for the company be acceptable? Please explain your answer d. Company is a pure Traditional Services company with $3,500,000.00 in annual revenue but $1,000,000.00 in EBITDA. Based on this should the owner accept a lower than standard 10x EBITDA multiple or $10,000,000.00? Please explain your answer For the toolbar press ALT+F10(PC) or ALTEFNF10(Mac). B IVParagraph Arial 10pt XX, Te BE A TXO 6) -- [+ * 2 . PR ES ES 4 O WORDS POWERTO OTTO P Seve Save and Sub Dick Saisto and submi. Click Save All Ansurau all

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