Private Equity

← All questions

An investor buys a business for £80 million using £50 million of debt and £30 million of equity. It sells for £90 million after debt falls to £40 million. Ignoring cash, fees, taxes and distributions, what reaches the equity investor, and what two changes created the gain?

Start with your best guess. One sentence is enough.

LBO practice: calculating equity proceeds · Unlearnt