What is the implied fair exit EBITDA for a company sold at a multiple of 15x with an ending equity value of 300 million?

To find the implied fair exit EBITDA of a company based on its sale at a multiple of 15 times, you can use the formula that relates equity value, exit multiple, and EBITDA. The general formula is:

Equity Value = EBITDA x Exit Multiple.

Given that the ending equity value is 300 million and the exit multiple is 15x, you can rearrange the formula to solve for EBITDA:

EBITDA = Equity Value / Exit Multiple.

Substituting the numbers into the equation gives you:

EBITDA = 300 million / 15 = 20 million.

This calculation shows that the implied fair exit EBITDA for the company sold at a multiple of 15x is indeed 20 million. Thus, the correct answer is aligned with this interpretation of the relationship between equity value and the exit multiple. This approach highlights the standard valuation principle used in leveraged finance to determine a company's financial performance metrics based on market transactions.