medium · Private Equity accounting-flow
A target company has $200M of Assets, $120M of Debt, and $80M of Book Equity. If a sponsor pays $300M for 100% of the company's equity, how much 'Goodwill' is created on the pro-forma LBO balance sheet? (Assume no other write-ups).
- $220M
- $180M
- $300M
- $100M
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