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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 18 of 52

Looking at the seasonality chart, when actual working capital is above the average (normalised) working capital level, the effect on the purchase price is best described as:

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

Always a negative adjustment regardless of the level

B

No adjustment at all

C

A negative adjustment on the purchase price

D

A positive adjustment on the purchase price