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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 7 of 52

In the LBO exit waterfall, how is the Enterprise Value at exit typically estimated?

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

Beginning equity balance plus accrued interest

B

Net debt at exit minus cash generated during the hold period

C

Exit revenue multiplied by the entry multiple

D

Exit EBITDA multiplied by the exit multiple, on a cash-free / debt-free basis