LBO model help

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.


bro, these numbers dont make any sense for an LBO model. what private equity shop would pay 13x multiple for a company with

Hi Mobius, Thanks for the comment. The assumptions are from the management. I guess, I should lower the growth estimates for revenue to lower the EBITDA multiples.

Or use an appropriate discount rate.

Hi Chad Pajji, I think the discount rate is in line. thanks,