medium · Private Equity paper-lbo
A leveraged buyout of a manufacturing firm with $80M in EBITDA is financed with 60.0% debt at a 7.0% interest rate.
If the purchase multiple is 9.0x EBITDA and transaction costs are $20M, what is the sponsor's initial equity check?
- 288M
- 316M
- 308M
- 452M
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