Calculate the debt/EBITDA multiple required to make the sale of Wonderland a viable LBO. Entry EBITDA 11,540
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Question:
Calculate the debt/EBITDA multiple required to make the sale of Wonderland a viable LBO.
Entry EBITDA | 11,540 |
EV EBITDA multiple, entry and exit | 13 x |
Investment time horizon, years | 5.0 |
Exit EBITDA | 13,500 |
Debt at exit | 100,000 |
Required IRR | 20.0% |
2.6x
10.4x
119,678.2
6.5x
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
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