medium · Investment Banking ma-lbo
An LBO sponsor is evaluating a target with $400 million in entry EBITDA. The exit EBITDA is projected to be $562 million.
If the entry and exit multiples are both 7.5x and the sponsor repays $939 million of debt, how much value was created specifically by EBITDA growth?
- $1,215 million
- $162 million
- $2,154 million
- $939 million
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