Private Equity Fund - Private Equity Multiples and Prices

Private Equity Multiples and Prices

The acquisition price of a portfolio company is usually based on a multiple of the company's historical income, most often based on the measure of earnings before interest, taxes, depreciation, and amortization (EBITDA). Private equity multiples are highly dependent on the portfolio company's industry, the size of the company, and the availability of LBO financing.

Read more about this topic:  Private Equity Fund

Famous quotes containing the words private, equity, multiples and/or prices:

    Never seem wiser, nor more learned, than the people you are with. Wear your learning, like your watch, in a private pocket: and do not merely pull it out and strike it; merely to show that you have one.
    Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)

    If equity and human natural reason were allowed there would be no law, there would be no lawyers.
    Christina Stead (1902–1983)

    If twins are believed to be less intelligent as a class than single-born children, it is not surprising that many times they are also seen as ripe for social and academic problems in school. No one knows the extent to which these kind of attitudes affect the behavior of multiples in school, and virtually nothing is known from a research point of view about social behavior of twins over the age of six or seven, because this hasn’t been studied either.
    Pamela Patrick Novotny (20th century)

    On the breasts of a barmaid in Sale
    Were tattooed the prices of ale;
    And on her behind
    For the sake of the blind
    Was the same information in Braille.
    Anonymous.