medium · Private Equity & LBOs

A sponsor acquires an add-on at 7.0x $10M EBITDA using $70M of debt.

If the platform exits at 10.0x and the debt is paid down to $50M, what is the exit equity value of this add-on component?

  1. $30M
  2. $100M
  3. $50M
  4. $20M

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