LBO & Paper LBO
Build a full returns bridge. Entry: EBITDA 100, 9x, net debt 600. Exit (yr 5): EBITDA 140, 11x, net debt 350. Attribute the equity gain to the three drivers.
Model answer
Entry EV = 900; entry equity = 900 − 600 = 300. Exit EV = 140 × 11 = 1,540; exit equity = 1,540 − 350 = 1,190. Total equity gain = 890. Attribution (growth at entry multiple, multiple at…
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