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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 49 of 56

Sort each statement into the exit route it describes.

Drag each statement into the correct group.

Sort every statement: place all cards into a group, then check your answer.

Statements

4

Drag each statement into the correct group.

Recapitalizations, insolvency, or multiple partial sales

Most common exit strategy; the new buyer needs a solid investment thesis for future value creation

Sale to another PE fund; more common since the growth of the PE industry; deals tend to be done faster with less M&A process failure

Uncertain timing as it depends mainly on capital markets conditions; normally requires a minimum size

Strategic Sale

0

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Secondary Sale

0

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IPO

0

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Others

0

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