FS Financial Statements Workbench
← Back to Private Equity

Private Equity

Lecture 9 - 10: LBO Model, EV to Equity and Exit

Comprehensive quiz covering LBO model construction, types of EBITDA, value creation strategies, the EV-to-Equity bridge, net debt and working capital adjustments, completion mechanisms (locked box vs. completion accounts), governance, and exit routes.

Question 14 of 52

When including or excluding debt-like items in a comparable (peer group) analysis, what is the key principle?

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

Each company should be treated individually with no need for consistency

B

Only pension liabilities may ever be included as debt-like items

C

Debt-like items should always be excluded from comparables

D

Inclusion or exclusion of items should be applied consistently throughout the peer group