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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 31 of 52

Sort each statement into whether it describes Completion Accounts or the Locked Box mechanism.

Drag each statement into the correct group.

Sort every statement: place all cards into a group, then check your answer.

Statements

6

Drag each statement into the correct group.

EV is adjusted at a balance sheet date a few months before completion

Buyer has full control over the accounts

Buyer pays 'interest on equity' for cash generation up to completion

Price is trued-up post-completion for actual debt and cash at the completion date

Buyer seeks an indemnity against 'leakage' with tightly drafted definitions

Risk transfer happens post-completion and disputes can remain outstanding

Completion Accounts

0

Drop matching statements here.

Drop statements here

Locked Box

0

Drop matching statements here.

Drop statements here