 |
|
 |
Financial leverage needs stable and recurring cash flows and significantly enhances capital gains for equity investors : |
| ACQUISITION (N) |
M€ |
|
EXIT (N+4) |
M€ |
| |
| Equity Value |
25.0 |
|
Equity Value |
40.0 |
| |
 |
| Equity Value |
1.6 x |
IRR 12.5% |
| |
| Acquisition holding |
Acquisition holding |
| Invested capital |
10.0 |
|
Invested capital |
32.0 |
| Acquisition debt |
15.0 |
Acquisition debt |
8.0 |
| Financing |
25.0 |
Total price |
40.0 |
| |
|
| Capital |
3.2 x |
IRR 33.7% |
|
|
|
 |
