how much debt could company issue in merger or acquisition

How much debt could a company issue in merger or acquisition? (from interview prep) The provided answer was as follows; You would use the combined company’s LTM (Last Twelve Months) EBITDA figure, find the median Debt/EBITDA ratio of whatever companies you’re looking at, and apply that to your own EBITDA figure to get a rough idea of how much debt you could raise.

I need some clarification here.... 1) It says "find the Debt/EBITDA ratio of whatever companies you're looking at".. the "whatever companies" here refers to "comparable companies" of seller???

2) It says using "combined company's EBITDA". so the combined company's EBITDA is the same as the "your own EBITDA figure" in the very last step?

Any kind of help would be appreciated. Thank you so much.