Question:

What are the different levers in an LBO?

Remove Bookmark

Answer hidden.

Answer:

Deal Levers:

Entry multiple
Exit multiple

Financial Levers:

Amount of debt
Different types of debt

Operating Levers:

Improving efficiency of the business
Cost synergies
Optimizing SG&A spend
Expanding margins

Other

LBO

Why do private equity firms use leverage when buying a company?

What variables impact an LBO the most?

How could a PE firm boost its return in an LBO?

What is the circular reference in an LBO?

What are some characteristics that make a good LBO candidate?

Why would a PE firm perform a dividend recap of one of their portfolio companies?

What is the "tax shield" in an LBO?

What is a dividend recap?

Walk me through an LBO