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What is the expected IRR of this deal

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Question - A LBO firm completed the leveraged buyout acquisition of Fibria paying an EV/EBITDA multiple equal to 7.0x and a total equity contribution of $200.

The LBO firm expects to sell Fibria in 5 years with a 7.5x EBITDA exit multiple, with expected EBITDA of $124 and net debt (i.e., debt - cash) of $520 in year 5. What is the expected IRR of this deal?

Reference no: EM132962587

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