Your firm is considering the purchase of a small number of shares in a public...
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Accounting
- Your firm is considering the purchase of a small number of shares in a public firm, WinterCo, that has EBITDA of $100,000 per share. Your small position in an identical private firm has a value of 4X EBITDA. What is the most you should be willing to bid for WinterCo?
Market Transaction Multiple 6X
Peer Multiple 4.5X
Industry Multiple 5.5X
Liquidity Discount 20%
Control Premium 30%
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