Working on a deal now valued at 4.5x -5x which we think is within market range (industry comps are 4-6x).
However when we look at purchase price allocation across the balance sheet, the write up of PP&E creates significant negative goodwill...thus the purchase price is lower than the FMV of the assets + equity of the company.
Does this suggest that our EBITDA multiple and corresponding valuation is below market and thus not competitive?
Is my bid below market rates and not competitive?
by a searcher
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