1. Your firm is considering the purchase of a small number of shares in a public firm, WinterCo, that has EBITDA of $100,000 per share. Your small position in an identical private firm has a value of 4X EBITDA. What is the most you should be willing to bid for WinterCo?  

Market Transaction Multiple 6X                       

Peer Multiple 4.5X          

Industry Multiple 5.5X   

Liquidity Discount 20%

Control Premium 30%

Answer rating: 100% (QA)

C Liquidity Discount 20 A liquidity discount is a lower valuation applied to illiquid Shares Lack of ... View the full answer