In a traditional LBO analysis, it is common practice to assume an exit multiple that is:
A)Below the entry multiple
B)Above the entry multiple
C)Equal to the entry multiple
D)Both A and C

Question

Quizplus · Accepted Answer

In traditional LBO analysis, it's common to assume an exit multiple that is either equal to or below the entry multiple to maintain conservative estimates and account for potential market or business performance changes over the investment period.

In a Traditional LBO Analysis, It Is Common Practice to Assume