Question
You are evaluating a prospective LBO investment and determine that the Year 5 EBITDA estimate is $800 million. Although the company is expected to be
You are evaluating a prospective LBO investment and determine that the Year 5 EBITDA estimate is $800 million. Although the company is expected to be acquired today for a 10x multiple of EBITDA, you believe that through implemented business efficiencies it will warrant a selling multiple of 11x based on year 5
EBITDA. Additionally, you estimate that the appropriate discount rate is 9.7%. Using the EV multiple method, what is the present value of the terminal value of this investment? Ignore price paid and interim cash flow assumptions, just the assumed sale proceeds in present value terms.
- $5.9 billion
- $5.5 billion
- $8.8 billion
- $5.2 billion
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Ziglar On Selling The Ultimate Handbook For The Complete Sales Professional
Authors: Zig Ziglar
1st Edition
0785288937, 978-0785288930
