LBO – Equity Bridge

Articles

What Is a Value Creation Bridge in Private Equity?

What actually drives private equity returns? Learn how a value creation bridge splits EBITDA growth, multiple expansion, and deleveraging. Jetzt üben.

How to Build a Value Creation Bridge for a PE Case Study Interview

Asked to quantify a PE deal's returns in an interview? Learn to build a value creation bridge step by step, with a full worked numeric example. Jetzt üben.

Cases

Value Creation Bridge

You've just sold a portfolio company after a 5-year hold. Walk me through how much of the equity value you created came from EBITDA growth, how much came from multiple expansion, and how much came from paying down debt — and quantify each lever in dollars and as a percentage of total value created.

Value Creation Bridge: SaaS Buyout Variant

Same deal, different profile. You bought a fast-growing SaaS company with much lower leverage than a typical industrials LBO. After a 5-year hold, decompose the equity value created into EBITDA growth, multiple expansion, and debt paydown — and explain why the mix looks so different from a traditional industrials buyout.