Next-Gen Interview Preparation
Master Your
Technicals
Private EquityMedium
A PE firm is acquiring a software company at 12× EBITDA. Post-close, EBITDA drops 20% due to customer churn. How does this affect the returns math, and what levers does the sponsor have?
The entry equity value stays fixed but the EBITDA base shrinks, so effective entry multiple re-rates to ~15×. IRR erodes on both the numerator and denominator…
7.8
SCORE
7.8 / 10
AI Feedback

Good instinct on the multiple re-rate — flagging ~15× effective entry is the right anchor. Your IRR erosion logic is directionally correct but the levers section needs more structure...

Scroll to explore
FITE FINANCE
PRECISION IN PREPARATION
Next-Gen Interview Preparation
Master Your
Technicals
Scroll to explore

Built for every student at any skill level.don't leave it to chance.

Practice, don't guess.
▸
8 Interview Categories
IB, PE, AM, Consulting & more
▸
AI-Powered Grading
Instant feedback on every answer
▸
Mock Interview Mode
Structured scenarios with scoring

Start Preparing

Built for every student at any skill level.