LBO & Paper LBO
Two deals both return a 2.5x MOIC. Deal A: all from EBITDA growth and debt paydown at a flat multiple. Deal B: half from multiple expansion. Which do you prefer and why?
Model answer
Prefer Deal A. Same headline return, but A's return is built on controllable, durable drivers (operational improvement and deleveraging) and is robust to a flat or softer exit environment. Deal B…
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