Lbo interview - Study guides, Class notes & Summaries

LBO Interview UPDATED Exam Questions and CORRECT Answers What is a leverage buyout and why does it work? - Ans - PE firm acquires a company using a combination of Debt and Equity (Cash) -Operates it for several years -Improves the business in some manner - Sells the company at the end of the period to realize a return on its investment

LBO Interview Questions With 100% Correct Answers!!

LBO Interview Questions With 100% Correct Answers!!

LBO Acquisition of a company by an investor group Purchase price financed by debt PE firm uses the company's cash flows to pay interest expense on the debt and to pay off the debt principal LBO valuation represents the maximum amount a sponsor can pay in order to achieve its required return objectives Types of LBOs Sponsor buyout: Financial sponsor buys all the equity of the target Club deal: Two or more sponsors pool capital to acquire the target (used in megadeals) Public to private: Taking...

LBO Interview Exam Questions and Answers ...

LBO Interview Questions graded A+

20 Week PE Interview Prep - LBO Modeling Exam Fundamentals of Modeling LBOs - ANSWER ️️ EV/EBITDA is most common multiple for LBOs EV is used because sponsors buy equity in the company but also have to worry about the existing debt because if they are adding more debt on they will most likely break the covenants of the existing debt e.g. company with 600 equity and 200 of debt, the 200 debt will have to be taken into consideration, also new debt will have to be considered so debt is v...

20 Week PE Interview Prep - LBO Modeling Exam

20 Week PE Interview Prep - LBO Modeling Exam

20 Week PE Interview Prep - LBO Modeling Exam Fundamentals of Modeling LBOs - ANSWER ️️ EV/EBITDA is most common multiple for LBOs EV is used because sponsors buy equity in the company but also have to worry about the existing debt because if they are adding more debt on they will most likely break the covenants of the existing debt e.g. company with 600 equity and 200 of debt, the 200 debt will have to be taken into consideration, also new debt will have to be considered so debt is v...