LBO Technical Questions

1) Info:

EBITDA 50 growing 15% YoY

Entry Multiple 9.0x

Total Debt 5.5.0x

3 years period hold

Cash 200

What is the exit multiple to receive an IRR of 20%?


2)

5-year period hold

Debt 4.0x

EBITDA Flat for the 5 years

EBITDA/LFC 50%

MoM 2.0x

Exit Same Multiple

How much can you pay for the business?


Could anyone add more questions of this nature? Thanks

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