The leveraged buyout of Inwido - valuation

Abstract

This work project was conducted by three finance students and takes the form of an Investment Committee Paper proposing the leveraged buyout of Inwido, a Swedish window and door manufacturing group. The company was valued at an 8.4x EV/EBITDA, at entry and exit. Under the proposed business plan and capital structure, the investment case yields an IRR of 26.3% and a MM of 3.8x, over a holding period of 6 years. This paper also explores different aspect of valuation between relative and intrinsic valuation. With a special emphasis on the valuation of PE targets and Inwido.