Private Equity
Comprehensive exam-oriented quiz based exactly on the Private Equity T4 2020 exam and solution file.
Question 14 of 14
Case
Veganlife is a small portuguese brand of vegan hamburgers, currently with an EBITDA of €50 mln and net debt of €100 mln. Five years ago, the company was acquired by a Private Equity fund for €250 mln (50% debt) with 20% Sweet Equity (with a cost of €2 mln). Today, the fund is divesting and will sell the company at 6x EBITDA. FRI accrues 10% a year on a compounded basis. There are no entry or exit fees.
Write your answer in your own words. It will be graded with Gemini.