Truth Squad Answers

April 20, 2012Truth Squad AnswersDear Client:A couple of readers questioned my use of a 4 X GP multiple in valuing the A-B branches, which put the value at $2 billion. I was assuming that neighboring wholesalers would be buyers, so there'd be a strategic and synergistic motive to pay a premium. But perhaps 4xGP is a little rich. Instead, let's assume a multiple of 10 x EBIDTA. Sources say A-B branches probably pull down $1.10 a case in EBIDTA (yes,