Guided Walkthroughs
Paper LBO — Step 9 of 10: What changes if you exit at 11.0x instead of 10.0x — and how do you decompose the full value creation?
Model answer
Exit EV = 150 × 11.0 = $1,650M; equity = 1,650 − 400 = $1,250M; MoM = 1,250 / 400 = 3.125x; IRR ≈ 25–26% (exact: 3.125^(1/5) − 1 = 25.6%). So ONE turn of multiple expansion adds $150M of proceeds (1…
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