Assume that PE firm Omega is purchasing Company Alpha at the end of 2021. ...
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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?
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