medium · Private Equity paper-lbo

A sponsor buys a company with 50M in EBITDA at a 10.0× multiple. At exit in Year 5, EBITDA is75M and the multiple has expanded to 11.0×.

What is the value created from 'Multiple Expansion' alone?

  1. $325M
  2. $250M
  3. $50M
  4. $75M

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