Private Equity Fund - Private Equity Multiples and Prices

Private Equity Multiples and Prices

The acquisition price of a portfolio company is usually based on a multiple of the company's historical income, most often based on the measure of earnings before interest, taxes, depreciation, and amortization (EBITDA). Private equity multiples are highly dependent on the portfolio company's industry, the size of the company, and the availability of LBO financing.

Read more about this topic:  Private Equity Fund

Famous quotes containing the words private, equity, multiples and/or prices:

    Oh! a private buffoon is a light-hearted loon,
    If you listen to popular rumour;
    From morning to night he’s so joyous and bright,
    And he bubbles with wit and good humour!
    Sir William Schwenck Gilbert (1836–1911)

    If equity and human natural reason were allowed there would be no law, there would be no lawyers.
    Christina Stead (1902–1983)

    If twins are believed to be less intelligent as a class than single-born children, it is not surprising that many times they are also seen as ripe for social and academic problems in school. No one knows the extent to which these kind of attitudes affect the behavior of multiples in school, and virtually nothing is known from a research point of view about social behavior of twins over the age of six or seven, because this hasn’t been studied either.
    Pamela Patrick Novotny (20th century)

    The earth only has so much bounty to offer and inventing ever larger and more notional prices for that bounty does not change its real value.
    Ben Elton (b. 1959)