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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 44 of 56

In the exit waterfall, how is the balance of an accruing instrument such as mezzanine or a sub loan determined at exit?

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

Always zero, because it must be fully repaid before exit

B

Beginning balance plus accrued interest

C

Beginning balance minus scheduled repayments

D

Exit EBITDA multiplied by the exit multiple