Private Equity firm is looking to buy a Beryan Company through a Leveraged Buyout Structure (LBO). Please use the summary below to answer the following questions:

1. What is the EV/EBITDA prior to the transaction
2. What is the EV/EBITDA after the transaction
3. What is the Total Market Value Purchase Price needed to buy the Company
4. How much is the Total Debt after the transaction
5. Assuming Equity investors receive 50% of the cash flows what will be their return on invested capital in year 1 and year 2 assuming capital expenditures and interest stay unchanged

Share Price	30
Shares Outstanding	1,000
Total Debt	10,000
EBITDA	6,000
Capital Expenditures	1,000
LBO Premium	30%
Equity Contribution to purchase price	25%
Interest (after the transaction)	2,000
Taxes	0
EBITDA Growth Rate	10%

Answer rating: 100% (QA)

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