hard · Private Credit & Debt loan-structures-instruments
Apex Manufacturing is undergoing an LBO with an entry EV of 500.0 million at an 8.0× EBITDA multiple. The capital structure consists of 300.0 million in net debt and 200.0 million in sponsor equity. At exit in Year 5, EBITDA has grown to 85.0 million, the exit multiple is 8.5×, and the company has paid down 120.0 million of debt.
What is the value creation specifically attributable to multiple expansion?
- 180.0 million
- 42.5 million
- 222.5 million
- 25.0 million
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