medium · Private Equity & LBOs
A $1.2B LBO is funded with $700M of debt. Management rolls over 10% of the total pre-deal equity. Transaction costs are $30M and minimum cash is $20M. Target has 0 cash and0 debt.
What is the sponsor's required cash equity check?
- $550M
- $495M
- $440M
- $530M
Sign up free to see the explanation and track your rank →
More Private Equity & LBOs practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?