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Nwc 2.0 free download9/1/2023 XYZ exits the target investment after Year 5 at the same EBITDA multiple used at entry (5.0x FTM EBITDA).Depreciation is expected to equal $20 million each year.Operating working capital is expected to increase by $5 million each year.Capital expenditures are expected to equal 15% of sales each year.EBITDA margins are expected to remain flat during the term of the investment.Revenue is expected to increase by 10% year-over-year (y-o-y).ABC expects to reach $100 million in sales revenue with an EBITDA margin of 40% in Year 1.Assume the weighted average interest rate on debt to be 10%.The debt-to-equity ratio for the LBO acquisition will be 60:40. ![]() XYZ Private Equity Partners purchases ABC Target Company for 5.0x Forward 12 months (FTM) EBITDA at the end of Year 0.
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