INTEGRATED CASE · 12–15 MINUTES
The seller wants $430m.
Would you recommend it?
You’re advising a fictional buyer evaluating Harbor Supply. The CFO wants a short recommendation—not just a spreadsheet answer.
What you know
Harbor’s stated sustainable EBITDA is $72m. Selected comparable companies suggest an illustrative range of 7–9× EV/EBITDA, with 8× as your initial base case. Debt is $190m and excess cash is $30m. The seller asks $430m for all common equity.
All amounts $m. Debt is at stated value. No preferred stock, minority interest, fees, synergies, pension or lease adjustments. The multiple range is an exercise assumption, not market evidence. Do not assume the EBITDA is verified.