Business, 30.07.2021 04:50 duncanswart1558

Papermill Plc was acquired by a private equity firm, whose investment horizon is 5 years and minimum IRR requirement is 20.0%. The private equity firm estimates the exit EBITDA and exit EV EBITDA multiple to be 1,200.0 and 11.0x, respectively. The EBITDA at entry is 1,100.0 and the amount of debt financing raised at entry is 7.0x EBITDA. The cash flow model built by the private equity firm estimates the debt to be 5.0x EBITDA at exit. Using the assumptions above, estimate the equity funding of the deal at entry. Sales 1,000.0
Cost of goods sold 600.0
Selling, general and administration 100.0
Interest expense 50.0
Tax expense 75.0

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Papermill Plc was acquired by a private equity firm, whose investment horizon is 5 years and minimum...