Build a Mini LBO Return Bridge

before-after walkthrough-steps Entry EBITDA is $20 million. Entry multiple is 8.0x. Debt at close is $70 million. Sponsor equity is $90 million. At exit, EBITDA is $28 million, exit multiple is 8.0x, and remaining debt is $45 million. MOIC = exit equity proceeds divided by sponsor equity invested; return quality comes from the bridge between entry and exit. A headline MOIC can hide a fragile source of return. If most of the gain depends on exit multiple expansion, the deal may be less controllable than the IRR suggests. Entry EV $20 million EBITDA x 8.0x = $160 million entry enterprise…

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