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 17 of 52

What is the relationship between movements in working capital and movements in net debt?

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

Net debt moves in the same direction as working capital but with a lag

B

The movement in net debt is opposite to the movement in working capital

C

Working capital has no effect on net debt

D

Net debt and working capital always move in the same direction by the same amount