hard · Private Equity pe-core
An LBO candidate is being evaluated based on its 'LBO Floor' valuation. A sponsor targets a 25% IRR over 5 years. The company's exit EBITDA is projected at $63.8M with an exit multiple of 8.0× and an exit debt of $175M.
If the available acquisition debt is $225M, what is the maximum Enterprise Value the sponsor can pay?
- 510.4M
- 109.9M
- 400.0M
- 334.9M
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