If I am working on an LBO case study where the target's EV is 100m, transaction fees are 5m, and LTM EBITDA is 20m, do I say that the entry multiple is 5x (i.e. calculated only on the EV) or 5.25x (i.e. EV and fees)? Which one do I compare against comps?
| +28 | Imposter Syndrome: PE to Publics | 4 | 4d |
| +26 | Blank | 15 | 11h |
| +26 | Ares buying LGP...now what? | 8 | 3d |
| +19 | Do PE VPs Always Have An Associate Under Them? | 12 | 3d |
| +18 | GTCR vs BDT MSD vs MDP | 16 | 3d |
| +18 | Hours at MF Infra Funds in London | 4 | 16h |
| +16 | Committing to CD&R? | 12 | 10m |
| +12 | Which PE funds are actually great investors | 1 | 2d |
| +11 | London Version: PE Check-in on Attrition, Promotions and State of Play | 6 | 2d |
| +9 | Roark FT | 12 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
It’s 5x
Quis vero consectetur est et. Consequatur deserunt repudiandae consequatur est quod modi rem.
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...