easy · Private Equity
A sponsor acquires 'Gamma Logistics' for a 10x multiple on $50M EBITDA, using $300M of debt and $200M of equity.
If EBITDA remains flat and the multiple remains 10x, but the company pays down $100M of debt over 5 years, what is the exit equity value?
- $300M
- $400M
- $200M
- $100M
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