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Acquisition Price Calculator
Calculate an M&A target's equity purchase price by applying an EV/EBITDA multiple, then bridging from enterprise value to equity value using net debt.
How to Use Acquisition Price Calculator
- 1Enter the target's EBITDA
- 2Enter the acquisition multiple (EV/EBITDA)
- 3Enter the target's net debt
- 4Click Calculate to see the Enterprise Value and resulting Equity Value
Frequently Asked Questions
Enterprise Value represents the value of the whole business (both debt and equity holders' claims). Buyers typically assume the target's existing debt, so the price actually paid to shareholders (Equity Value) is Enterprise Value minus Net Debt (debt minus cash).
EBITDA Multiple Calculator stops at Enterprise Value. This tool takes the same EV formula one step further, subtracting net debt to reach the equity/purchase price — the figure that actually matters to selling shareholders.
It varies enormously by industry, growth rate, and deal dynamics — this tool doesn't recommend one, it computes the price for whatever multiple you enter (informed by comparable recent transactions in your sector).
No — it's a straightforward EV-to-equity bridge assuming an all-cash-at-close structure. Earnouts, escrows, and deferred payments would need separate modeling.
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