How do PE firms update the EV on an acquisition? So if they acquire a company in February at $X EV and want to value the company in December, would you just add the EBITDA generated for the rest of the year (March-December) to the original EV?

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Should be updated EBITDA * multiple - adding ebitda generated makes no sense

like

To add, most firms valuation backups will include reference to public comps (multiples), private comps (multiples), and DCF (still ultimately multiples, lol).

Which one you use and/or weighting of methodologies varies

like

I’m confused about this too.

If the PE firm acquires one company in February of year 1 and another company in December of year 1 then merges them together, how would the modeling work if you want to model the combined entity? Would you just count them both as acquired in Y1 for purposes of the LBO/DCF, or would you need to do a monthly-based model to account for the timing of the different acquisitions in year 1?

Thank you!

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