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 8 of 56

When deriving cash available for debt service from EBIT, which of the following are deducted (or, for non-cash items, added back)?

Select every statement that applies.

Deduct cash tax charges

Deduct dividends paid to ordinary shareholders

Deduct the increase in Net Working Capital

Deduct Capital Expenditure

Add back non-cash expenses such as depreciation and amortisation

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