How would one go about calculating the impact increases in EBITDA, deleveraging, multiple appreciation, etc. have on returns, particularly MOIC (e.g., $50mm increase in EBITDA increased MOIC by 1.0x)?
Feel like this should be relatively easy, but have had a long day and can’t for the life of me figure out the appropriate calculation. Is it essentially just figuring out the impact these factors had on equity value?
| +106 | Is Everyone Too Bearish on PE? | 34 | 14h |
| +48 | Why would anyone do PE in long term in 2026? | 13 | 1d |
| +24 | Q&A: What It’s Actually Like Working at an Independent (Fundless) Sponsor | 4 | 3d |
| +22 | Do you think PE has actually helped you become a better entrepreneur? | 8 | 3h |
| +21 | UMM PE or High Paying Strat Finance? | 13 | 1d |
| +21 | Striking out in last rounds | 2 | 4d |
| +16 | Portfolio Marks | 8 | 4h |
| +15 | DELETE | 1 | 2d |
| +15 | Overwhelmed by amount of data / granularity | 3 | 2d |
| +13 | MF Tech PE 2026 | 2 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Yes but you have to normalize all the other ones when you calculate each one.
Meaning like if calcing effect of multiple expansion you have to do like
Entry Revenueaverage margin(difference in multiple)
Have to use entry figures and averages to normalize out the other factors when calcing the effect of each lever.
These bridges are always a disaster in practice.
Impedit quaerat voluptatem odit voluptatem maiores. Nihil sit soluta sed. Voluptatem voluptatibus repellat enim rerum itaque quis in.
Sequi id blanditiis omnis libero aliquid. Deleniti facilis quia autem soluta dignissimos impedit minima. Sed consequatur sapiente atque saepe et nam est. Impedit minima odit voluptatem quas nihil.
Nihil illo repellat aut qui. Aut libero id voluptatem eaque tempora nemo qui et. Et error vitae aut esse. Eos eos voluptatem minus optio explicabo dolor.
Illo assumenda pariatur architecto repellat. Aliquam autem nostrum ut corporis neque. Qui debitis similique aliquid dignissimos rerum eius. Quis aut quo voluptas voluptatem et pariatur. Fuga deleniti voluptatem dolorum necessitatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...