medium · Private Equity paper-lbo
A sponsor is modeling a 'Paper LBO'. EBITDA is 100M, entry multiple is8.0x, leverage is4.0x(400M). Over a 5-year hold, EBITDA grows at 10% CAGR.
If the exit multiple is also 8.0x and $150M of debt is paid down, what is the Year 5 MoIC?
- 3.22x
- 2.60x
- 2.10x
- 1.85x
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