One precedent transaction had a 10x EV/EBITDA selling multiple while another was 5x. Both same industry. List reasons.

Answer

Possible reasons: (1) Strategic vs financial buyer — strategics pay more due to synergies; (2) Market cycle — bull-market multiples > bear-market multiples; (3) Geography — US/Europe deals often > EM deals; (4) Size — bigger companies often command a premium; (5) Competitive dynamics — a competitive auction with multiple bidders pushes multiples higher; (6) Litigation or regulatory overhang on one target depressed price; (7) Distressed sale vs strategic sale; (8) Different growth profile or margin trajectory; (9) Tax structuring (asset vs stock deal can affect the implied multiple).