Lifesaver Inc. , a producer of personal protective equipment, trades on the TSX Venture stock exchange at an EV/EBITDA multiple of 4. 0x. From performing a precedent transaction analysis, you note that recent acquisitions of similar companies have transacted at an EV/EBITDA multiple of 6. 0x. The following is not a valid potential reason for this discrepancy:
1-Special purchaser considerations, such as synergies, being inherent in the precedent transaction multiples
2-The presence of a control premium within the EV/EBITDA multiple implied by the acquisitions
3-Multiples implied by precedent transactions are not relevant when considering publicly traded companies
4-The presence of an implied minority discount (a discount due to a lack of control in the company when purchasing shares in the open market) in the 4. 0x EV/EBITDA trading multiple