Transaction Comps Engine

1. The "Sponsor Floor" Logic

Unlike a DCF which values future cash flows, this engine performs a Reverse LBO. It solves for the maximum price a financial sponsor can pay today (`Entry Enterprise Value`) to achieve a specific IRR target upon exit, given a set leverage profile.

2. Calculation Waterfall

• A Determine Exit Valuation
  Exit EV = EBITDA × Exit Multiple
• B Estimate Debt Paydown
  Exit Net Debt = Initial Debt - (EBITDA × FCF% × Years)
• C Solve for Maximum Equity Check
  Required Entry Equity = Exit Equity / (1 + IRR)^Years