Business, 14.01.2021 21:40 caitievincent9739

Lifesaver Inc., a producer of personal protective equipment, trades on the TSX Venture stock exchange at an EV/EBITDA multiple of 4.0x. From performing a precedent transaction analysis, you note that recent acquisitions of similar companies have transacted at an EV/EBITDA multiple of 6.0x. The following is not a valid potential reason for this discrepancy: 1-Special purchaser considerations, such as synergies, being inherent in the precedent transaction multiples
2-The presence of a control premium within the EV/EBITDA multiple implied by the acquisitions
3-Multiples implied by precedent transactions are not relevant when considering publicly traded companies
4-The presence of an implied minority discount (a discount due to a lack of control in the company when purchasing shares in the open market) in the 4.0x EV/EBITDA trading multiple

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