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5

Value Creation

Where the returns actually come from: EBITDA growth, multiple expansion, and debt paydown.

Module checkpoint

3 questions · score 70% or higher to pass.

1.Exit at 11x after buying at 9x (EBITDA, debt flat) is value from:
2.Why not underwrite mainly on multiple expansion?
3.Debt paydown typically contributes about what share of returns?