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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 8 of 52

In the exit waterfall, after Enterprise Value is determined, how is the equity value obtained?

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

By difference — Enterprise Value less net debt

B

By adding the subordinated loan and mezzanine balances

C

By multiplying EBITDA by the entry multiple

D

It equals the beginning equity balance plus interest