Assume that PE firm Omega is purchasing Company Alpha at the end of 2021. ...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Assume that PE firm Omega is purchasing Company Alpha at the end of Purchase multiple is X LTM EBITDA. Company Alpha has $mm of revenues in expected to grow $mm annually for the next years. Alpha has an EBITDA margin of which will remain unchanged. The initial leverage of X EBITDA will be taken at the time of the deal. $mm of debt will be paid down before the exit. There is no multiple expansion at the exit exit multiple is the same as purchase multiple. What is the entrypurchase value? Prepare the sources and uses of capital table for the LBO. points What is the value of Company Alpha at exit year What is the value of sponsors equity at exit? What is the cashoncash return for the sponsors?
Assume that PE firm Omega is purchasing Company Alpha at the end of Purchase multiple is X LTM EBITDA. Company Alpha has $mm of revenues in expected to grow $mm annually for the next years. Alpha has an EBITDA margin of which will remain unchanged. The initial leverage of X EBITDA will be taken at the time of the deal. $mm of debt will be paid down before the exit. There is no multiple expansion at the exit exit multiple is the same as purchase multiple. What is the entrypurchase value? Prepare the sources and uses of capital table for the LBO.
points What is the value of Company Alpha at exit year What is the value of sponsors equity at exit? What is the cashoncash return for the sponsors?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.