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:
“Like those before it, this decade takes on the marketable subtleties of a private phenomenon: parenthood. Mothers are being teased out of the home and into the agora for a public trial. Are we doing it right? Do we have the right touch? The right toys? The right lights? Is our child going to grow up tall, thin and bright? Something private, and precious, has become public, vulgarizedand scored by impersonal judges.”
—Sonia Taitz (20th century)
“If equity and human natural reason were allowed there would be no law, there would be no lawyers.”
—Christina Stead (19021983)
“Just because multiples can turn to each other for companionship, and at times for comfort, dont be fooled into thinking youre not still vital to them. Dont let or make multiples be parents as well as siblings to each other. . . . Parent interaction with infants and young children has everything to do with how those children develop on every level, including how they develop their identities.”
—Pamela Patrick Novotny (20th century)
“United Fruit... United Thieves Company... its a monopoly ... if you wont take their prices they let your limes rot on the wharf; its a monopoly. You boys are working for a bunch of thieves, but I know it aint your fault.”
—John Dos Passos (18961970)