The private equity firm reviewing this deal believes that it can achieve this 30%+ IRR...
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The private equity firm reviewing this deal believes that it can achieve this IRR because of the companys strong EBITDA and FCF growth and the fact that the ROIC nearly triples, even as the revenue and EBITDA growth rates slow down by the end.
Also, it argues that since of the returns come from EBITDA Growth, with only from Multiple Expansion, the assumptions are not overly aggressive. What is the biggest POTENTIAL PROBLEM with these arguments?
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