medium · Private Credit market-sourcing-sponsor-dynamics

A company is acquired for 11x EBITDA. The transaction is financed with 6x Debt and the remainder in Sponsor Equity.

What is the implied 'Equity Multiple' of the entry capital structure?

  1. 6.0x
  2. 11.0x
  3. 1.8x
  4. 5.0x

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