I am very new to financial modeling. I am trying to build a LBO model for a small private company.
I have a valuation (purchase price) of 10MM and EV/EBITDA of 13X and IRR of 24%. I am told that the purchase price should be between 17 - 20MM. When I use 17MM as the purchase price the EV/EBIDTA jumps to 21X.
are there adjustment that I can make in the model to lower this EV/EBIDTA with the 17MM as purchase price instead of 10MM. It feels weird adjusting the inputs to fit the preconceived outputs.