Exit Timing Considerations

This problem tests whether you understand how private equity firms think about holding periods, capital deployment, and exit timing in an LBO. In interviews, bankers want to see that you can reason beyond a simple sale decision and consider the tradeoff between locking in gains now and keeping capital invested in a company that may continue to create value. It also checks your awareness of practical constraints such as finding an attractive new investment, the cost of moving capital from one deal to another, and how overall market conditions affect the attractiveness of an exit.