Guided Walkthroughs
Paper LBO — Step 3 of 10: Build the sources & uses with 60% debt financing.
Model answer
Uses: $1,000M purchase EV (ignoring fees). Sources: debt = 60% × 1,000 = $600M; sponsor equity = the plug = 1,000 − 600 = $400M. That's 6.0x leverage on entry EBITDA (600 / 100) — aggressive but…
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