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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 49 of 52

What is the difference between a drag-along right and a tag-along right?

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

Both force the minority shareholder to sell their stake

B

A drag-along gives the minority the option to join a sale; a tag-along forces the minority to sell

C

Both give the minority shareholder an option but never an obligation to sell

D

A drag-along lets a majority shareholder force a minority to join the sale on the same terms; a tag-along gives a minority the right (not obligation) to join a majority's sale on the same terms