• When determining value for a company based on transaction rather than trading comps, one of the key differences that will affect the value is:

  • Lack of a comparable universe
  • Premium paid for control of the business
  • Unavailable historical information
  • Target was never public

  Why is Offer Value / EBITDA not an appropriate multiple to use in Transaction Comparables Analyses?

  • Because Offer Value ignores the Valuation from other Public Market investors
  • Because Offer Value does not include a Control Premium into the Valuation
  • Because Offer Value is an Equity Value metric, while EBITDA is an Enterprise Value metric
  • Because Offer Value is equivalent to Enterprise Value, and should not be divided by EBITDA

  A company provided the following GAAP to non-GAAP reconciliation:

  Non-GAAP Operating profit
  ($ in millions)	2019A
  GAAP Operating profit	56
  Amortization of purchased intangible assets	6
  Stock based compensation	51
  Restructuring expenses	184
  non-GAAP operating profit	297
  Cash flow statement
  ($ in millions)	2019A
  GAAP net income	346
  Depreciation and amortization	108
  Stock based compensation	51
  Changes in working capital	8
  Other	9
  Cash from operations	522

  The company above defines Adjusted EBITDA as operating profit before depreciation and amortization and excluding non-GAAP items. Based on the information provided, what is the value of Adjusted EBITDA for this company?

  • $414 million
  • $411 million
  • $405 million
  • $399 million