Skip to content
SheetRank

The Paper LBO

The classic mental-math interview test. Calculate MoIC and IRR with simple numbers and zero circularities.

PE · Foundations · about 20 minutes · 9 guided steps

Lesson outline

Entry

  1. Step 1: Purchase Price (checkpoint)
  2. Step 2: Debt (checkpoint)
  3. Step 3: Entry Equity (checkpoint)

Exit

  1. Step 4: Exit EBITDA (checkpoint)
  2. Step 5: Exit Enterprise Value (checkpoint)
  3. Step 6: Ending Debt (checkpoint)
  4. Step 7: Exit Equity (checkpoint)

Returns

  1. Step 8: MoIC (checkpoint)
  2. Step 9: IRR (checkpoint)