At an exit multiple of 6.5x EBITDA, what would be the total equity value created (i.e.,...

  

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At an exit multiple of 6.5x EBITDA, what would be the total equity value created (i.e., the increase in the equity value the buyer realizes) in this LBO? Format your answer as $1,234.4 as 1234 Transaction Assumptions Purchase Year 2018 Exit Year 2023 EBITDA Purchase Multiple 5.87x EBITDA Exit Multiple 6.50x Purchase Year EBITDA 1,184.0 Exit Year EBITDA 1,279.5 Purchase EV 6,954.8 Exit EV 8,316.6 Exit Year Net Debt 1,990.9 Less Existing Debt (3,809.0) Implied Equity Value 6,325.7 Add: Cash on balance sheet Less: Mgmt Stake Equity Purchase Price 3,145.8 Sponsor Equity at Exit 6,325.7 Stock Purchase Price No. shares outstanding Dollars to equity holders Sponsor Equity Check Sponsor Equity/Sources $ 27.35 Beginning Debt 4,144.0 115.0 3,145.8 2,810.8 Sponsor IRR 17.6% 40.4% Sponsor Cash-on-Cash 2.3x At an exit multiple of 6.5x EBITDA, what would be the total equity value created (i.e., the increase in the equity value the buyer realizes) in this LBO? Format your answer as $1,234.4 as 1234 Transaction Assumptions Purchase Year 2018 Exit Year 2023 EBITDA Purchase Multiple 5.87x EBITDA Exit Multiple 6.50x Purchase Year EBITDA 1,184.0 Exit Year EBITDA 1,279.5 Purchase EV 6,954.8 Exit EV 8,316.6 Exit Year Net Debt 1,990.9 Less Existing Debt (3,809.0) Implied Equity Value 6,325.7 Add: Cash on balance sheet Less: Mgmt Stake Equity Purchase Price 3,145.8 Sponsor Equity at Exit 6,325.7 Stock Purchase Price No. shares outstanding Dollars to equity holders Sponsor Equity Check Sponsor Equity/Sources $ 27.35 Beginning Debt 4,144.0 115.0 3,145.8 2,810.8 Sponsor IRR 17.6% 40.4% Sponsor Cash-on-Cash 2.3x

Answer rating: 100% (QA)

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