LBO & Paper LBO
Worked returns bridge with multiple CONTRACTION: entry EBITDA 100 at 10x with net debt 550; exit year 5 EBITDA 150 at 9x with net debt 250. Attribute the equity gain.
Model answer
Entry EV = 1,000; entry equity = 1,000 - 550 = 450. Exit EV = 150 x 9 = 1,350; exit equity = 1,350 - 250 = 1,100. Total gain = 650. Attribution (growth at entry multiple, multiple change on exit…
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