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?
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