> ## Documentation Index
> Fetch the complete documentation index at: https://financecontext.com/llms.txt
> Use this file to discover all available pages before exploring further.

# /returns

> Build IRR/MOIC sensitivity tables across entry multiple, leverage, exit multiple, and growth scenarios

## What is PE Returns Analysis?

Returns analysis is how PE professionals determine whether a deal will make money -- and how much. The two primary metrics are **IRR** (Internal Rate of Return), which measures the annualized percentage return accounting for the timing of cash flows, and **MOIC** (Multiple on Invested Capital), which measures total return as a simple multiple of equity invested.

PE returns are driven by three levers: (1) **EBITDA growth** -- growing the company's earnings, (2) **multiple expansion** -- selling at a higher valuation multiple than you paid, and (3) **debt paydown** -- using the company's cash flow to pay down acquisition debt, which accrues to equity holders. Understanding which lever drives returns in a given deal is critical to assessing its risk profile.

## Command

```bash theme={null}
/returns [company or deal parameters]
```

Loads the `returns-analysis` skill and models PE returns with sensitivity across entry multiple, leverage, exit multiple, and growth scenarios.

<Tabs>
  <Tab title="With parameters">
    ```bash theme={null}
    /returns Acme Industrial — $10M EBITDA, 8x entry, 4x leverage, 5-year hold
    ```
  </Tab>

  <Tab title="Without parameters">
    ```bash theme={null}
    /returns
    ```

    Claude will ask for entry EBITDA, valuation, financing assumptions, and exit parameters.
  </Tab>
</Tabs>

## What It Produces

**Base Case Returns Table** -- entry EV, equity invested, exit EBITDA, exit EV, net debt at exit, exit equity value, MOIC, IRR, cash-on-cash, with a returns attribution waterfall.

**2-Way Sensitivity Tables:**

* Entry Multiple vs. Exit Multiple
* EBITDA Growth vs. Exit Multiple (at fixed entry)
* Leverage vs. Exit Multiple (at fixed entry and growth)
* Hold Period vs. Exit Multiple

**Scenario Analysis** -- Bull / Base / Bear with revenue CAGR, exit EBITDA margin, exit multiple, MOIC, and IRR for each.

<Note>
  Each sensitivity table cell shows IRR / MOIC format. Results can be formatted with conditional coloring in Excel.
</Note>

## How to Customize

Edit the `returns-analysis` skill to adjust default leverage assumptions, add management rollover treatment, or include fee/carry netting calculations.

## Related Skill

See the [Returns Analysis skill](/en/private-equity/skills/returns-analysis) for the full modeling framework, key formulas, and notes on fees, management rollover, and tax considerations.