hard · Private Equity paper-lbo
An LBO model shows EBITDA growing from $80M to $107.9M over 5 years. Entry EV was 8.0x EBITDA, and the exit is also modeled at 8.0x. Transaction costs were $20M.
If exit net debt is $247.3M (down from $430M at entry), how much of the $345.9M total value creation is due to deleveraging?
- $223.2M
- $182.7M
- $60.0M
- $120.0M
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