Leveraged Buyout Valuation Multiple Selection

An investor is evaluating a leveraged buyout (LBO) opportunity and is trying to determine the appropriate valuation multiple for the target company. The investor observes that similar companies in the same industry have been acquired at an average EBITDA multiple of 8x in recent transactions. However, the target company has a higher level of operational efficiency and projected growth rates due to its innovative technology. Accordingly, the investor is considering whether to apply a premium to the average multiple.

Which of the following valuation multiples is most likely to be appropriate for the investor to use in this situation to reflect the value added by the target company’s superior characteristics?