easy · Private Equity paper-lbo
A PE firm acquires a company at 8.0x EBITDA and exits 5 years later at 10.0x EBITDA.
If EBITDA remained flat at $100M and debt was reduced by $200M, which factor was the largest driver of equity value creation?
- Multiple Expansion
- Organic Revenue Growth
- EBITDA Growth
- Margin Expansion
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