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As before, company has a EBITDA of $110 million and debt of $30million, assuming it has no cash. the total enterprise value of the company
As before, company has a EBITDA of $110 million and debt of $30million, assuming it has no cash. the total enterprise value of the company is at 3x EBITDA. a growth equity fund invests $200 million of new capital in company A. what fraction of equity is controlled by the PE firm after this investment? seven years later, the PE firm exits this investment when the enterprise value reaches $960 million; outstanding debt at exit is $60 million. which of the following changes to the company can explain this increase in the value of the company? increase in multiple? increase in debt? decrease of EBITDA from 110 to 50 million or increase of EBITDA from 110 to 320 million
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