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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 47 of 52

What is the key distinction between a Right of First Refusal (ROFR) and a Right of First Offer (ROFO)?

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

Both give the holder the right to bid before any third party is approached

B

Both give the holder the right to match an existing offer

C

A ROFR lets the holder bid first, whereas a ROFO lets the holder match an existing offer

D

A ROFR lets the holder match an offer the seller has already received, whereas a ROFO lets the holder bid on the asset before the owner approaches other players