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Private Equity Fund
Three Paper LBO drills covering missing inputs, multiple contraction and different debt-repayment schedules.
Three Paper LBO drills covering missing inputs, multiple contraction and different debt-repayment schedules. PE funds use Paper LBOs to screen candidates. Allow 10 to 15 minutes per drill, identify the missing input before calculating returns and compare each result with the 20% IRR target.
Each drill has a short fact sheet with one input missing. Ask for that input, then explain your calculation aloud or on paper within 10 to 15 minutes.
Before calculating, check that you have: the price, the funding, the EBITDA path, the one-off cost of any restructuring in the plan, D&A, capex, working capital, tax, what happens to the debt, and the exit date and multiple. Ask for whatever is not there. Then give the IRR and MOIC and a clear yes or no. The fund wants at least a 20% IRR. Figures are in £ millions throughout, 2025 is the base year, and every deal completes on 31 December 2025.
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