Private Equity

Lecture 7 - 8: Valuation, LBO Model, Exit

Quiz covering LBO structure and lender protection, financial covenants, the maximum leverage exercise, dividend recaps, valuation methodologies and multiples, the LBO model build and returns breakdown, and exit routes.

Question 30 of 56

Which of the following are identified as pitfalls when using multiples?

Select every statement that applies.

Using EBITDA as a proxy for cash

Using historical multiples of the same company (especially in buyouts)

Failing to capitalize operating leases when comparing firms

Failing to adjust for non-operating assets such as excess cash

Ignoring the impact of seasonality

Current Quiz

Question Map

30 / 56 active