Key Rule #3 Flashcards by Han BB | Brainscape

Q

What determines purchase price of a public company?

A

premium- what will co accept vs precedent transactions
are there enough synergies to justify the price?
valuation

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Q

What determines purchase price of a private company?

A

based on Rev, EBITDA or PE Mults and valuation
what mults have other cos been gotten for
Calculate Purchase TEV based on findings -> Purchase EqV

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Q

A

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