Question: Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $26 million. Robbin knows that

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $26 million. Robbin knows that these similar deals have recently closed:

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

a. What is the average price multiple? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

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 1 decimal place.)

Company Shell Technologies Layer Company Case Partners EBITDA $16 million $31 million $21 million Valuation $57.6 million $96.1 million $86.1 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!

Calculate the payback period and the Net present value (NPV) using the following data: Returns, Investment Year 0: $0, $1M Year 1: $1M, $2M Year 2: $3M, $2M Year 3: $6M, $5M Year 4: $10M, $5M Year 5:...

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 $35 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 $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 $32 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:...

Robbin Partners, a private equity fund, has identified Nest Corp. as a potential acquisition target. Nest has an EBITDA of $29 million. Robbin knows that these similar deals have recently closed:...

If a partnership is insolvent, how is the amount of cash distributed to individual partners determined?

When estimating the costs of the CAF standard, the NHTSA assumed that other vehicle features would remain constant. Some claim this assumption is false and NHTSA underestimated costs. Assume...

Problem 3 - 8 Bond returns 1 0 If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for points both a premium and a...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...