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For the questions below, please state whether each of the following boost / hurt / have no impact on IRR & MOIC. For reference, the
For the questions below, please state whether each of the following boost hurt have no impact on IRR & MOIC. For reference, the acquistion of XYZCo occurs at the end of and exits at both multiples off of NFY Revenue or EBITDA.
Question : The federal reserve continues to hike interest rates and XYZCo's cost of debt rises from to between FY and FY The cost of debt declines back to the original by FY
Question : The strategic buyer negotiates for $M of the purchase price to be put in escrow, only to be released contingent on XYZCo successfully growing postacquisition in FY XYZCo then grows in FY
Question : PE Sponsor negotiates to receive of XYZCo EBITDA each year from to as a residual payment all incremental to the original x revenue purchase price
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