medium · Private Equity paper-lbo
An LBO is executed with an entry Enterprise Value (EV) of 500M at a 10.0x EBITDA multiple. At exit in Year 5, the EBITDA has grown to80M, the exit multiple is 11.0x, and net debt has been reduced from 300M to200M.
Using the standard three-bucket return attribution, what is the value created specifically by multiple expansion?
- $300M
- $80M
- $50M
- $380M
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