hard · Private Equity accounting-flow
At entry, a sponsor records $1,200M of goodwill and $400M of step-up intangibles. By Year 3, a downturn forces a $300M goodwill impairment (non-cash, non-deductible) in the same year EBITDA is $220M, D&A is $60M (including $30M deductible step-up amortization), cash interest is $50M, capex is $55M, and the tax rate is 25%.
What is Year-3 levered free cash flow available for debt paydown?
- $77.50M
- minus $222.50M
- $152.50M
- $2.50M
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