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Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $27 million. Robbin knows that
Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $27 million. Robbin knows that these similar deals have recently closed: Company Shell Technologies Layer Company Case Partners EBITDA $17 million $ 32 million $ 22 million Valuation $ 62.9 million $102.4 million $92.4 million Based on the above transactions: a. What is the average price multiple? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Average b. Using the valuation multiple from part (a), what is the estimated value of Nest Corp.? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Estimated value million
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