We decide to do a deal, investing 100MM equity in a company with 100MM EBITDA at a 7x multiple. At investment we have 100MM in cash on the balance sheet.

@ Exit we sell the company for 7x, EBITDA same as before, but have retired 200MM in debt and have no cash.

What is the IRR if we exited at 3 years? 5 years?

Is this an example of financial engineering or operational improvement or both?