Answering "what would you pay for it" in PE interviews

nb7's picture
Rank: Chimp | banana points 2

Hello,
I am interviewing with a PE firm this week and based on input from others at the firm, am expecting to have case interviews with "what would you pay for it" as the ultimate question. Transaction multiples are one way, and another is back-calculating based on desired return. What is the easiest way to the the latter method in a "back of the envelope" manner?
Thanks

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Comments (4)

Jun 30, 2014

Pump twice and close your eyes.

Feb 14, 2016

bump

Feb 16, 2016

"whatever number the partner has in mind"

Feb 16, 2016