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Comparable Schlegel UK
Multiple Average Value
Market value/sales 1.03 $62,280,000
Market value/book value 1.68 12,374,000
Market value/EBITDA* 9.73 59,559,000
Market value/EBIT* 13.48 64,987,000
Market value/EBI* 18.17 55,238,000
Average value $50,888,000
*E=Earnings; I=Interest; T=Taxes; D=Depreciation; A=Amortization.
Shapiro then applied this same approach to eight publicly
traded companies. The principal difference between the two
approaches is that comparison to publicly traded companies values
Schlegel UK as a stand-alone company, whereas the preceding
approach valued Schlegel UK as an acquisition target. The
results from the publicly traded market multiple analysis are as
follows:
Comparable Schlegel UK
Multiple Average Value
Market value/sales 0.84 $50,262,000
Market value/book value 1.36 9,152,000
Market value/EBITDA 7.46 44,565,000
Market value/EBIT 11.11 52,729,000
Market value/EBI 13.09 38,488,000
Average value $39,039,000
Lastly, Shapiro used the sale of Schlegel Corporation for
$233.2 million as a market comparable applying the market
multiples from Schlegel Corporation to the financial data of
Schlegel UK in arriving at an average value of $41.338 million.
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