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.
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Famous quotes containing the words private, equity, multiples and/or prices:
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—Christina Stead (1902–1983)
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—John Dos Passos (1896–1970)