Moelis Deck
Paper LBO: buy a company at 10x on $100M of EBITDA, fund it with $600M of debt, grow EBITDA to $130M by year five, pay down $200M of debt, exit at 10x. Walk to the return.
Model answer
Narrate in four steps. Entry: 10 x $100M = $1,000M enterprise value; $600M debt means $400M sponsor equity. Exit EV: 10 x $130M = $1,300M. Exit debt: $600M - $200M paid down = $400M, so exit equity =…
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More from Moelis Deck
- Who founded Moelis & Company, when, and what was his background?
- Why did Ken Moelis leave UBS to start an independent firm? Tell the story the way an interviewer wants to hear it.
- Moelis & Company was founded in 2007, on the eve of the financial crisis. Why did that timing end up working, and why do interviewers like this question?
- Name early marquee assignments that put Moelis & Company on the map, and explain what each signaled.
- When did Moelis & Company go public, and why does 'founder-led' matter in interviews?
- What kind of firm is Moelis & Company, and which firms are its natural peer set?
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