A simple leveraged buyout of a European services company
New to this industry?Start with its one-minute summary: Private equity and venture capital
The prompt
A PE fund buys a business services company in Europe with EBITDA of EUR 100 million, paying 10 times EBITDA. It funds the deal with EUR 500 million of debt and the rest in equity. Over 5 years EBITDA grows to EUR 130 million and the company uses its cash to repay EUR 200 million of debt. The fund sells at the same 10 times multiple. What are the MOIC and roughly the IRR, and where did the return come from?
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
Clarifying questions, with the interviewer's answers
My notes on this case
0 of 5,000 characters. Saves automatically.