Private Equity
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 21 of 52
Case
A company is acquired at an Enterprise Value of 1,000. At signing, net debt is 100 and working capital sits at a level of 100. At closing, working capital has risen to 150 and net debt has risen to 150. The parties are considering whether to reference a normalised working capital level of 150 in the deal.
Write your answer in your own words. It will be graded with Gemini.