medium · Private Equity advanced-lbo
A portfolio company reports GAAP EBITDA of $20.0M. During due diligence, the following items are identified: $1.5M in non-recurring litigation costs, $0.5M in one-time M&A advisory fees, and a $1.0M run-rate adjustment for a new contract signed mid-year.
If the sponsor uses a 6.0x leverage multiple, what is the maximum debt capacity based on 'Adjusted EBITDA'?
- $120.0M
- $144.0M
- $138.0M
- $132.0M
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