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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 cash tax charges

2

Operating Profit (EBIT)

3

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

4

Less principal

5

Cash available for debt service

6

Less interest

7

Less increase in Net Working Capital

8

Less Capital Expenditure