FRS Capital Advisors, a private equity firm, is considering purchasing Toms Auto, a private company. Toms EBITDA

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FRS Capital Advisors, a private equity firm, is considering purchasing Tom’s Auto, a private company. Tom’s EBITDA is $4.1 million, and FRS has collected information on two similar transactions. Information on these comparable purchases follows:

Company Tiga's Auto Nation Benicio's Imports EBITDA $2.5 million $5.4 million Valuation $14.50 million $30.24

What value should FRS assign to Tom’s Auto?

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

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Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Jan 01, 2024 01:46 PM

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FRS Capital Advisors, a private equity firm, is considering purchasing Toms Auto, a private company. Toms EBITDA

Question:

Company Tiga's Auto Nation Benicio's Imports EBITDA $2.5 million $5.4 million Valuation $14.50 million $30.24 million

Step by Step Answer:

The EBITDA multiples for the comparable transact...View the full answer

Fundamentals Of Investments Valuation And Management

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