Comprehensive exam-oriented quiz based exactly on the Private Equity T4 2020 exam and solution file.
Question 8 of 14
You own a Private Equity fund and have the following investment proposition: EBITDA of €10 mln, FCF of €15 mln, entry and exit multiples of 8x EBITDA and leverage of 3x EBITDA. At time of exit, 50% of debt is paid down (net debt’s position is 50% of what it was at entry) and you (the fund) generate a 3x return. Assume no Sweet Equity. At what price must you sell the business?
Pick one: press 1-4 on your keyboard or click an option.