medium · Investment Banking
An LBO model shows a 5.0x entry multiple and a 5.0x exit multiple. EBITDA grows from $100.0 million to $150.0 million over 5 years. Total debt at entry was $300.0 million and at exit is $100.0 million.
What was the dominant driver of equity value creation?
- EBITDA Growth
- Debt Repayment
- Cost of Debt reduction
- Multiple Expansion
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