medium · Private Equity paper-lbo

Calculate the Year 5 Exit Equity Value for a Paper LBO with the following assumptions: Entry EBITDA of $80M, 7% annual growth, 10x Entry and Exit Multiple, $320M Entry Debt, and a cumulative Debt Paydown of $100M over the 5-year hold.

  1. $901M
  2. $1,122M
  3. $700M
  4. $680M

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