medium · Private Equity paper-lbo
An LBO sponsor acquires a company for 500M at a10.0× EBITDA multiple with300Min net debt. After 5 years, the company is sold for880Mat an11.0× multiple, and net debt has been reduced to200M.
What portion of the480M total equity value creation is attributable specifically to multiple expansion?
- $100M
- $80M
- $300M
- $180M
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