easy · Investment Banking ma-lbo

What is the primary definition of 'Multiple Expansion' as an LBO return driver?

  1. Expanding the company's product line to grow topline revenue further
  2. Repaying scheduled debt tranches ahead of the mandatory amortization schedule
  3. Increasing the number of debt tranches layered into the post-transaction capital stack
  4. Exiting the investment at a higher EV/EBITDA multiple than the entry multiple

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