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.

Failing to capitalize operating leases when comparing firms

Ignoring the impact of seasonality

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

Using EBITDA as a proxy for cash

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

Current Quiz

Question Map

30 / 56 active