IB/PE interview question
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⁉️Question: A company was purchased via LBO for $175 and the Sponsor had to contribute $75 of Equity at the close. 5 years later, the company has $20 of EBITDA and sells at a multiple of 10x EV/EBITDA and the Exit Equity Value is $150. The company pays a $25 dividend. How much Cash Flow did the business generate over the course of the LBO? Let us know your answer and why in the comments #investmentbanking #privateequity #financecareers #financejobs #lbo
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⁉️Question: A company was purchased via LBO for $175 and the Sponsor had to contribute $75 of Equity at the close. 5 years later, the company has $20 of EBITDA and sells at a multiple of 10x EV/EBITDA and the Exit Equity Value is $150. The company pays a $25 dividend. How much Cash Flow did the business generate over the course of the LBO?
Let us know your answer and why in the comments
#investmentbanking #privateequity #financecareers #financejobs #lbo
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