Question: Problem 17-13 Private Equity Valuation (LO2, CFA2) Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an

Problem 17-13 Private Equity Valuation (LO2, CFA2) Robbin Partners, a private

Problem 17-13 Private Equity Valuation (LO2, CFA2) 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 $96.0 million $165.6 million $150.0 million Based on the above transactions: a. What is the average price multiple? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average b. Using the valuation multiple from part (a), what is the estimated value of Nest Corp.? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Estimated value million

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

13. Private Equity Valuation (LO2, CFA2) 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...

Private Equity Valuation (LO2, CFA2)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...

NEED ASAP Problem 1 7 - 1 3 Private Equity Valuation ( LO 2 , CFA 4 ) Robbin Partners, a private equity fund, has identified Nest Corporation as a potential acquisition target. Nest has an EBITDA of...

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $33 million. Robbin knows that these similar deals have recently closed:...

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:...

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:...

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $27 million. Robbin knows that these similar deals have recently closed:...

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $34 million. Robbin knows that these similar deals have recently closed:...

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $27 million. Robbin knows that these similar deals have recently closed:...

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $35 million. Robbin knows that these similar deals have recently closed:...

Question 17 An experiment consists of rolling a single die. Two events are defined as: A = {a 5 or 6 shows up}, and B = {a 1 or 2 shows up). %3D Not yet answered Marked out of 1.00 Define a third...

Suppose we divide the hypothetical population in Example 2.2 into clusters (we used this population to examine SRS and Stratified samples on the previous assignments). I have split the 8 units into 4...

he S&P 5 0 0 risk premium is estimated at 9 % per year, with a standard deviation of 2 3 % . The hedge fund risk premium is estimated at 1 1 % with a standard deviation of 3 8 % . The returns on both...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

(Appendices) Megan, age 28, is insured under an individual major medical policy. The plan has a calendar-year deductible of $1,500, a 25 percent coinsurance provision, and an annual out-of-pocket...

(Appendices) Some states have second-injury funds in their workers compensation programs. However, in recent years, a number of states have terminated such funds.LO6 a. How does a second-injury fund...

(Appendices) PURCHASES, SALES, AND COST OF GOODS SOLD. The following data were available for Jeans Inc., a seller of denim clothing, at January 1 of a recent year: Jeans Inc. records purchases and...