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A sample of recently completed transactions yields the following:
Average Enterprise Value $30 million
Average price to earnings ratio 15 times
Average price to sales ratio 0.8 times
Average EV to EBITDA ratio 9.0 times
Average control premium 20%
XYZ (a privately held company) is expected to report the following (in millions)
Total revenues $18.0
EBITDA 4.0
Net Earnings 1.8
Net Debt $ 9.0
Use the above information to estimate the fair value of XYZ.
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