medium · Private Equity value-creation

Apex Equity acquires a software company for an Enterprise Value of $1,000M. The acquisition is financed with $600M of debt.

If the company has $50M of cash on its balance sheet at the time of the transaction, what is the 'Net Debt' used in the valuation bridge?

  1. $550M
  2. $600M
  3. $400M
  4. $650M

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