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Please consider the following company financials: A private equity firm considers acquiring the company per 31/12/2018 and uses multiples valuation. It will use 4x the
Please consider the following company financials: A private equity firm considers acquiring the company per 31/12/2018 and uses multiples valuation. It will use 4x the 2018 EBITDA of debt to finance the acquisition at the entry date. The private equity firm targets to exit the company after 5 years at the end 2023 and expects to realise an exit 7.5. Because all debt level at entry. Calculate the maximum enterprise value and equity investment the PE is willing to invest at the entry date when the private equity-house targets an IRR of 25%. Enterprise value: 982.6 Equity Investment: 402.6 Enterprise value: 1433 Equity Investment: 1194 Enterprise value: 984.3 Equity Investment: 592.8 Enterprise value: 987.3 Eauitv Investment: 391.3
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