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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 40 of 56

Put the five steps to develop an LBO model in the correct order.

Drag the steps into the correct order. You can also use the arrow buttons.

Order the process: arrange every step from first to last, then check your answer.
1

Compare return with target

2

Build financial projections (P&L, operating model, financial assumptions, tax, cash flow assumptions, NWC, capex)

3

Calculate cash flows for valuation and return

4

Estimate exit value

5

Calculate the exit waterfall (breakdown of exit proceeds)