In the private equity context, the term “multiple expansion” refers to the increase in the value of a company that occurs when the ratio between the company value and key figures such as EBITDA is higher when selling than when buying. Private equity investors achieve returns without optimizing the company's operating business. This increase can result from market changes or a strategic realignment, for example.
In an industrial context, “multiple expansion” refers to the process of gradually relieving the pressure of steam or gas in several successive stages in order to use the energy more efficiently. This is particularly common in steam engines or steam turbines, where the steam is not expanded in a single stage but in turbines or cylinders. This reduces energy consumption and increases efficiency.