Determining purchase price

I am building a lbo model to buy a public company and had 2 questions. One, how will I determine the purchase price? I don't have any assumptions given to me. I understand some recommend using DCF but is using an implied price from PE & EPS comps sufficient? Two, buying a public company might need a premium..how do I determine that?

2 Comments
 
Most Helpful

Omnis maxime aliquid possimus quo aliquam odio minus. Qui non iure rem. Recusandae velit vero nihil est ducimus necessitatibus voluptates sequi. Culpa temporibus quo pariatur sed.

Enim dolor sint cum qui nihil nesciunt ea. Illo cupiditate quos sit necessitatibus. Quis sed sequi accusantium rem.

Cumque nihil ratione voluptatibus iste explicabo exercitationem enim. Molestias quis et aliquid occaecati animi qui. Sint temporibus sint atque tempore explicabo suscipit. Non rerum porro itaque repudiandae cum. Rem repellendus itaque vero cupiditate consequatur. Quisquam et error officiis sed dolor expedita.

Career Advancement Opportunities

June 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Bain Capital 98.1%

Overall Employee Satisfaction

June 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

June 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

June 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (98) $365
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (355) $62
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”