medium · Investment Banking
If a sponsor requires a 20% IRR for a 5-year hold on a $10.0 million EBITDA company with 10% annual growth, what is the max entry multiple? Assume a 5.0x exit multiple and $25.0 million of debt that is fully repaid by exit (exit net debt = 0).
- 5.0x
- 5.7x
- 3.2x
- 4.8x
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