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Firm A acquired the remaining 70% of Firm B for $600M. Firm B has $120M of debt and $80M EBITDA. What's the transaction EV/EBITDA multiple?
Answer
Gross up to a 100% basis: $600M / 70% = $857M (implied 100% equity value). Add debt for EV: $857M + $120M = $977M.
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