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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 7 of 56

Order the cash flow waterfall from operating profit down to the cash used for principal repayment, as presented in the lecture.

Drag the steps into the correct order. You can also use the arrow buttons.

Order the process: arrange every step from first to last, then check your answer.
1

Less interest

2

Less increase in Net Working Capital

3

Less principal

4

Less Capital Expenditure

5

Add back non-cash expenses / income (incl. +/- depreciation and amortisation)

6

Less cash tax charges

7

Cash available for debt service

8

Operating Profit (EBIT)