LBO & Paper LBO
An interviewer says 'assume you buy and sell at the same multiple, no debt paydown, no margin change.' What single number then drives your MOIC?
Model answer
EBITDA growth — equivalently revenue growth, since margins are constant. With a flat multiple and no deleveraging, exit equity scales with exit EV scales with EBITDA. But note: MOIC on equity is NOT…
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