FS Financial Statements Workbench
← Back to Private Equity

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 41 of 56

In Step 1 of building an LBO model (building financial projections), which of the following is included?

Pick one: press 1-4 on your keyboard or click an option.
A

The operating model up to EBIT, plus financial assumptions such as debt amortization and interest, tax, and cash flow assumptions

B

The exit multiple assumption

C

The comparison of the achieved return against the target return

D

The exit waterfall breakdown