Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has

Question:

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $28 million. Robbin knows that these similar deals have recently closed:

Company Shell Technologies Layer Company Case Partners EBITDA $20 million $36 million $30 million Valuation $

Based on the above transactions:

a. What is the average price multiple?

b. Using the valuation multiple from part (a), what is the estimated value of Nest Corp.?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

See More Books

Question Posted: Dec 31, 2023 11:14 AM

See More Questions

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Case Swimmers Headphones1 Finally! Its the end of 2019 and you are sitting at your new desk in a plush office in north Bogota, with a delicious cup of Colombian coffee. You think about all it took to...
Centerwire Capital Partners is considering an investment in Glass Technologies. Glass has an EBITDA of $12.2 million, and Centerwire determines that similar deals have recently closed at a 5.5 times...
Describe the Spanish Theocratic Rule during Spain's colonial era in the Philippines?
The bottom graph in Figure 13.1 shows the actual performance of the Standard and Poor?s 500 Index for a five-year period. Two financial managers, Alpha and Beta, are contemplating this chart. Each...
Prepare the journal entries to record the following transactions on Kwang Companys books using a perpetual inventory system. (a) On March 2, Kwang Company sold $900,000 of merchandise to Sensat...
Describe the function of each branch of government.
According to the same NCAA data, the means and standard deviations of eligibility and retention rates (based on a 1,000-point scale) for the 2010-2011 academic year follow, along with the scores for...
on Jan 1 , mary took out a bank loan for $ 6 0 K with an interest rate of 5 % . Interest is payable on first of each following month. What is the posting for Sept 2 0 2 3 ?
Vista Venture Partners is considering an investment in a start-up firm that has developed a new technology for streaming data. If the venture is successful, Vista estimates it will be able to grow...
Two years ago, you invested $750,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water mark provision. Suppose the first year the fund manager lost 10...
Evaluate the integral. + X (3 + 4x - 4x)3/2 dx
Figure 1 illustrates how a barrier option works. The stock price starts at $100, ends at $80, and hits the barrier of $75 about halfway through the year. If the option were a 95-strike down-and-in...
Consider a directed graph described by the following weighted matrix: W= a. Draw this graph. b. Find the distance matrix using Floyd's algorithm. -0 3 00 - 8 0 00 00 00 8 Loo 00 80 1 8 m 8 3 1 8 1...
6. Consider a two-layer neural network as shown in Fig. Q6 with ReLU activation functions in the hidden layer and the output layer. The initial weights, biases and training inputs/outputs for a...
The plan is to search the whole record of all rainfall data for a particular station's data, and then present this data on the client screen. This search should be done in a thread. Consider the...
Create a Dependency Diagram for the database. For each Determinant give the business rule(s) that created the dependency.
Why is it not possible to sharply distinguish between short- and long-term decision?
Chicago Company sold merchandise to a customer for $1,500 cash in a state with a 6% sales tax rate. The total amount of cash collected from the customer was $558. $600. $642. $636. Nevada Company...
Jim and Linda are your tax clients. They were divorced two years ago, and the divorce decree stated that Jim was to make monthly payments to Linda. The court designated $300 per month as alimony and...
John and Mary have two small children and are looking for ways to help fund the childrens college education. They have heard that Series EE bonds are a tax-favored way of saving and have requested...
Lee and Jane have been your firms clients for most of the twenty years they have been married. Recently Lee came to you and said that he and Jane are obtaining a divorce, and he wants you to help him...
At January 1 , 2 0 2 4 , Caf Med leased restaurant equipment from Crescent Corporation under a nine - year lease agreement. The lease agreement specifies annual payments of $ 3 5 , 0 0 0 beginning...
An introduction section of a scientific paper should, Identify gaps in the research field Discuss critical information about the subject.
Maria Tallchief is a single taxpayer ( birthdate May 1 8 , 1 9 9 6 ) living at 1 9 1 9 Barker, Cypress Road, Cypress, TX 7 7 4 3 3 . Her Social Security number is 4 6 6 - 3 3 - 1 2 3 4 . For 2 0 2 3...

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has

Question:

Company Shell Technologies Layer Company Case Partners EBITDA $20 million $36 million $30 million Valuation $96 million $165.6 million $ 150 million

Step by Step Answer:

Multiples 9620 48...View the full answer

Fundamentals Of Investments Valuation And Management

Students also viewed these Business questions