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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 45 of 56

In the exit waterfall, the ordinary equity value is typically determined how?

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

By difference — it is the residual after all debt-like claims are satisfied

B

By a fixed contractual amount agreed at entry

C

By the senior debt repayment schedule

D

By multiplying exit EBITDA by the entry multiple