medium · Private Equity paper-lbo
A PE fund is modeling an exit in Year 5. The Year 5 EBITDA is projected to be $110M. The exit multiple is 10.0x. The company has a debt balance of $240M and a management incentive plan (MIP) that grants 12.0% of exit equity to management.
What are the sponsor's proceeds at exit?
- 756.8M
- 730.4M
- 968.0M
- 860.0M
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