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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 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

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Previous Question Next Question

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%

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 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

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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