XYZ Private Equity Partners purchases ABC Target Company for 5.0x EBITDA in year 1. The...
50.1K
Verified Solution
Link Copied!
Question
Accounting
XYZ Private Equity Partners purchases ABC Target Company for 5.0x EBITDA in year 1. The debt-to-equity ratio for the LBO acquisition will be 60:40. Assume the weighted average interest rate on debt to be 10%. ABC expects to reach $100 million in sales revenue with an EBH5A of 40% of that in Year 1. What is the Purchase price of ABC for XYZ? What is the debt funding amount
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.