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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 4 of 52

Put the five steps to develop an LBO model in the correct order.

Drag the steps into the correct order. You can also use the arrow buttons.

Order the process: arrange every step from first to last, then check your answer.
1

Build financial projections (P&L, operating model, financial assumptions, tax, cash flow assumptions)

2

Compare return with target

3

Calculate the exit waterfall (breakdown of exit proceeds)

4

Estimate exit value

5

Calculate cash flows for valuation and return