How do you typically consider the investment amount in a transaction that you intend to back-lever shortly after an acquisition?
For simplicity...suppose I acquire a company/asset for $100. One month later, I get $50 of debt and return $50 to equity. Six months after that, suppose I sell the company/asset for $150.
Would it be inappropriate to calculate the MOIC on the post-levered investment (and note calculation is based on a back-levered amount)?
| +49 | Everyone Seems Perfect in PE | 20 | 2d | |
| +28 | To all associates coming up on the 2 year mark, how bad is it to have no deals done? | 7 | 1d | |
| +27 | Easiest way to make about $2mm/y | 19 | 5s | |
| +26 | VP Level - when to follow up after final round | 10 | 5h | |
| +26 | What's Next? | 4 | 4d | |
| +22 | What happens if you go for on-cycle and don’t land an offer? | 23 | 4d | |
| +17 | Thoughts on KKR Infra? | 8 | 1d | |
| +14 | EBITDA walkdown to cash flow for debt service | 10 | 3d | |
| +14 | What do you hate the most about second round diligence? | 9 | 3d | |
| +13 | Why is Blackstone so dominant? | 9 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Dolores fugiat sequi quaerat laudantium. Ex nostrum nesciunt rerum similique.
Voluptas minus est reprehenderit ea nisi nostrum et. Error voluptas minima voluptatum omnis laborum quia. Hic et magni libero magnam in est eos. Id excepturi consequatur alias odio eius similique. Officiis itaque id quibusdam sit aut excepturi est. Est consequatur et autem ea sunt et pariatur. Reprehenderit fugit voluptate doloremque maxime autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...