Entry and Exit Multiple

Deal Terms

The EBITDA multiple paid when buying (entry) and received when selling (exit). The difference between the two, combined with leverage and EBITDA growth, is the engine of LBO returns.

Example

An entry at 7x and an exit at 9x gives a 2 turn multiple expansion, a meaningful source of return.

Related terms

• Accretion and Dilution
• Bolt On
• Data Room

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