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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 9 of 52

Explain the value creation breakdown of returns in an LBO. What two high-level components is total value creation split into?

Write your answer in your own words. It will be graded with Gemini.

Answer freely: concise wording is fine as long as it covers the lecture point.