medium · Investment Banking valuation-core
A private equity firm is evaluating an LBO. The entry Enterprise Value is $1,000 million, financed with $600 million of debt and $400 million of sponsor equity. After 5 years, the firm exits at an Enterprise Value of $1,500 million, and the debt has been paid down to $300 million.
What is the Multiple on Invested Capital (MOIC)?
- 1.5x
- 2.0x
- 4.0x
- 3.0x
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