medium · Investment Banking ma-lbo
An LBO exit is planned for the end of Year 5. The entry EV/EBITDA multiple was 7.0x on $100M EBITDA. Exit EBITDA is projected to be $150M.
If the sponsor targets a 2.5x MOIC on an initial $300M equity investment, what is the maximum Net Debt the company can have at exit?
- $750M
- $450M
- $300M
- $150M
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