medium · Private Equity paper-lbo
A sponsor acquires a company for 10.0x EBITDA. If the transaction is funded with 6.0x debt and 4.0x equity, what must the exit EBITDA growth be over 5 years to achieve a 2.0x MOIC, assuming no debt paydown and a flat exit multiple?
- 20.0%
- 60.0%
- 40.0%
- 100.0%
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