medium · Private Equity paper-lbo
A sponsor acquires DeltaFab for an Enterprise Value of $400M at a 10.0x EBITDA multiple ($40M EBITDA). 5 years later, the company is sold for $750M. During the hold, EBITDA grew to $60M and debt was reduced by $80M.
What is the value creation contribution specifically from EBITDA growth?
- $200M
- $80M
- $250M
- $150M
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