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 42 of 56

In the LBO exit waterfall, on what basis is Enterprise Value calculated at exit?

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

Revenue multiplied by the entry multiple

B

EBITDA multiplied by the exit multiple, on a cash-free / debt-free basis

C

Net debt plus equity value at entry

D

The sum of all cash interest paid during the holding period