purchase price intv question PE
This was a intv question:
If a company has 2.6M revenue and 1.1M ebitda, purchase price?
Explain your methodology.
Trending Content
| +205 | PE Recruiting Prep Guide - 2024 | 23 | 17h | |
| +37 | MF PE Analyst Programs Ranked | 33 | 47m | |
| +36 | How to exit from Continental Europe IB to London PE? | 10 | 1h | |
| +32 | Is PE worth it? | 19 | 1d | |
| +29 | LMM PE vs. MF PE? | 9 | 1h | |
| +28 | Is Thoma Bravo fucked? | 17 | 5d | |
| +25 | PE Tier List - Any ideas? | 19 | 14h | |
| +22 | For PE folks who don’t make partner, how much $ is left on the table? | 9 | 3h | |
| +20 | PE and Balance Sheet Heavy Businesses | 6 | 2d | |
| +18 | Down after rejection | 8 | 5d |
Career Resources
I don’t think they’re looking for a number. I think they’re looking for your thought process. Does the industry use revenue or EBITDA multiples?What is the range of industry multiples? What are historical growth rates? How volatile have revenue and EBITDA been? What is the company’s free cash flow conversion? Any insight into NTM values?
Hmm seems like a weirdly vague question but id prolly say id find some ebitda multiples of m&a comps slap the median on there and find a rough EV.
Et saepe odit sed pariatur. Qui et praesentium cum odit iure voluptatibus beatae tempora. Consequatur sequi earum quia consequatur ut et. Numquam officia reprehenderit quasi est quia.
Consequatur eos molestias excepturi unde facilis. Maxime sed est et omnis tempore iure sit et. Omnis dolorem esse nulla distinctio. Omnis temporibus nemo aut dolorem dolores molestiae.
Cupiditate harum atque quos consequatur consequatur. Id in beatae provident delectus cupiditate quisquam totam. Rem sit corrupti dolorem corrupti minima.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...