What's a reasonable target MOIC for the LBO of a $100m Rev SaaS company?

What do you think is a reasonable MOIC? Having a debate - $100m rev, 90% recurring, 25% cash flow, super long government contracts. Standard 5 year hold. 

 

Don't know much about how much debt there is but for a mature stage business you're going to be hard pressed finding a target MoC under 2.5x. probably 2.5-2.75x with a 20-23% IRR is appropriate.

 

You're correct, real life doesn't play out like the underwriting case usually. But, you also may be comparing net vs gross returns. Most LP's report returns net of fees and carry, while the underwriting case is obviously before any fund level fees/carry are deducted, which may be the difference here.

 

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