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

Calculate the debt/EBITDA multiple required to make the sale of Wonderland a viable LBO.

Entry EBITDA11,540
EV EBITDA multiple, entry and exit13 x
Investment time horizon, years5.0
Exit EBITDA13,500
Debt at exit100,000
Required IRR20.0%


2.6x

10.4x

119,678.2

6.5x


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