The success of an MBO partly depends on the growth of the Company:

• Increase in profitability : sales growth (international expansion, new products, external growth) and cost control
• Limit working capital needs : impact on indebtedness
• Increase in valuation multiples : reach of critical mass, growth profile, equity story

ACQUISITION (N)	M€		EXIT (N+4)	M€
Acquired Company			Sold Company
Sales	50.0		Sales	75,0
EBIT	5.0		EBIT	7,0
EBIT multiple	6.0 x		EBIT multiple	6,4 x
Enterprise Value	30.0		Enterprise Value	45,0
Net financial debt	-5.0		Net financial debt	-5,0
Equity Value	25.0		Equity Value	40,0
Capital		1.6 x	IRR 12.5%