TVS 016 – Leveraged Buy Outs
Hope everyone had a great labor day weekend! Today we are going to be talking about Leveraged Buy Outs, another form of valuation and modeling. As promised, please see a link to the actual model of an LBO, and a more detailed explanation in case you are interested.
- LBO Drivers
- Purchase Price
- Debt Quantum
- Interest Rate
- Synergies
- Exit Price
- Dividend Recap
- Walk through of an LBO
- Types of companies that are good LBO Candidates
- High Cash Flow Generating
- Stable and predictable business
- Companies where you can cut costs
- Low CapEx business
- How buying a home is similar to an LBO transaction
As always, please let me know if you have any questions, comments, or suggestions. Email me directly at alan@thevampiresquid.com or on the contact form. Also, please subscribe to my facebook page for live updates facebook.com/thevampiresquid. Also follow me on Quora at https://www.quora.com/profile/Alan-Li-1
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