medium · Investment Banking ma-lbo

A Private Equity firm is evaluating an LBO of a company with $50M in LTM EBITDA. They plan to pay an 8.0x entry multiple and use 60% debt to finance the acquisition.

What is the amount of Sponsor Equity required?

  1. $200M
  2. $240M
  3. $300M
  4. $160M

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