hard · Investment Banking
An LBO is structured with 70% debt and 30% equity at an 8.0x entry multiple.
If the exit multiple remains 8.0x and the company grows EBITDA by 20% while repaying 20% of its initial debt over 5 years, which driver contributed most to the increase in equity value?
- EBITDA Growth
- Debt Repayment
- The drivers contributed equally
- Multiple Expansion
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