easy · Private Equity paper-lbo

A company is acquired in an LBO for an enterprise value of $640 million, representing 8.0× LTM EBITDA.

If the deal is funded with 4.0× leverage, what is the initial equity check required from the sponsor?

  1. $480 million
  2. $320 million
  3. 400 million
  4. 160 million

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