How do you calculate the equity value at exit in an LBO model?

```
Equity Value at Exit =
Exit EBITDA × Exit Multiple
− Net Debt at Exit
− Mezzanine (incl. PIK accretion)
− Holdco PIK Notes (incl. accretion)
− Vendor Loans, Earn-Outs
```

• EBITDA Y5: 60 × 9.0x = $540m EV
• − Senior Debt 80, − Mezz 35, − PIK 50, − Earn-Out 10
• = $365m equity value

Juniors typically forget PIK accretion (20–30% of the mezz balance) and earn-out reserves. Build both into the model.