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Private Equity

Lecture 1-2: PE Introduction

Comprehensive exam-prep quiz based on the lecture on private equity, LBO basics, market conditions, PE jobs, investment process, due diligence, and useful terms. Source:

Question 38 of 69

Complete the LBO value-creation example from the lecture.

Fill in the value created by each driver and the final exit equity proceeds.

Entry EBITDA: 100

Entry EV/EBITDA: 8.0x

Entry EV: 800

Entry Net Debt: 450

Entry Equity: 350

Exit EBITDA: 150

Exit EV/EBITDA: 10.0x

Exit Net Debt: 250

Complete the exercise: Fill in the value created by each driver and the final exit equity proceeds.
DriverAmount
EBITDA growth
Multiple arbitrage
Deleveraging
Exit equity proceeds