hard · Private Equity paper-lbo
A growth equity investor targets a 25% IRR over a 4-year hold. They invest $15.0M in a company currently generating $5.0M in EBITDA.
If the exit multiple is 10.0x and EBITDA is expected to grow by 20% annually, what ownership percentage must the investor acquire today (assuming no debt at exit and no dilution)?
- 35.3%
- 41.2%
- 30.0%
- 22.4%
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