medium · Private Equity
A sponsor acquires DeltaFab for an Enterprise Value of $400M at a 10.0x EBITDA multiple ($40M EBITDA). 5 years later, the company is sold for $750M. During the hold, EBITDA grew to $60M and debt was reduced by $80M.
What is the value creation contribution specifically from EBITDA growth?
- $200M
- $80M
- $250M
- $150M
Sign up free to see the explanation and track your rank →
More Private Equity 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?