easy · Private Equity paper-lbo
A company is acquired for 8.0x LTM EBITDA of $50M. It is sold 5 years later for 8.0x exit EBITDA of $75M.
If net debt remained constant at $200M throughout the hold, what was the primary source of the equity value increase?
- Debt Paydown
- EBITDA Growth
- Financial Engineering
- Multiple Expansion
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