This one has got me boggled. A company trades like this: EV 200.0 EBITDA 55.0 Trading Muliple 3.6x You want to acquire a a division in the company like this, and make and offer: EV 64.8 EBITDA 8.0 Multiple you pay 8.1x Theoretically, how much does the company trade at if: 1- The company announces the offer it had publicly but refuses it (revaluation of the asset). 2- The company accepts the offer and the transaction is now closed. Intuitively it should give the same answer but for me it doesn’t, I have 2 multiples and I am not sure which one is right if any.
assume no debt bump