medium · Private Equity & LBOs
In a $600 million LBO, the sponsor contributes $200 million of new cash and management rolls over $25 million of their previous equity into the new structure.
What is the management's pro-rata ownership percentage in the post-transaction company, assuming no initial option pool?
- 11.1%
- 15.0%
- 4.2%
- 12.5%
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