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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 34 of 56

Match each valuation metric to when it is most appropriate to use it.

Drag each statement into the correct group.

Sort every statement: place all cards into a group, then check your answer.

Statements

4

Drag each statement into the correct group.

For nascent firms with limited financial data, e.g. VC-backed companies

Relevant for early-stage or growth-stage firms; useful when earnings are negative due to cyclical downturns

Easily available, standard financial metric; but can be affected by D&A lagging actual capex and accounting treatment

Common PE metric for relatively mature firms

Operational metrics (e.g. website views)

0

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Sales

0

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EBITDA

0

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EBIT

0

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