medium · Private Equity advanced-lbo
An LBO is structured with 60% debt at a 7% weighted average interest rate. The target's LTM EBITDA is $80M.
To maintain a minimum interest coverage ratio (ICR) of 2.0x, what is the maximum Enterprise Value the sponsor can pay, assuming no cash is used for fees?
- $952M
- $816M
- $667M
- $1,142M
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