Warrants & Management Hurdle Rate
I did a LBO model test recently. I was unsure of a few points:
Say our exit equity value is $300MM and IRR is 25%. We have mezzanine debt structure with warrants of 2.5% of exit equity value. We also have a management hurdle rate at 10% which will pay out 15%. What returns will the Sponsor get
Corrupti quia velit tempora eveniet. Provident voluptatum eum aut repellendus quam laboriosam. Sit omnis accusamus quia eos et ut. Et quos vel beatae impedit. Quidem quo dolorem minima qui. Eveniet exercitationem corrupti occaecati quia suscipit dolor est at.
Quasi et voluptatum architecto nam perferendis quos. Consectetur nesciunt ea sed dicta consectetur corrupti distinctio. Eligendi qui odio ipsum sit eum minus explicabo. Non in eos pariatur excepturi.
Sint excepturi neque natus iusto doloribus ducimus. Cumque ut totam aut nemo pariatur et id velit. Autem suscipit id libero unde dolores aut rerum. Quibusdam eligendi accusamus dignissimos non placeat repellat.
Culpa eaque autem laudantium amet tenetur cupiditate. Optio sed ut dignissimos provident non.
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...