Hi,
I know this question has been answered before but it's still not clear for me.
I read that existing debt of a target doesn't matter in a lbo, but why that ?
I mean: if the target has $500m of existing debt that needs to be refinanced, then I need to raise $500m more fund (either debt or equity), no ? If I can't raise it by debt only, then, it will affect my return ? So existing debt would matter ?
Thanks
| +192 | UBS Accused of Favoring H-1B Workers While Cutting U.S.-Born Employees | 50 | 1h |
| +92 | IB Energy Drink Tier List / Ranking | 63 | 29m |
| +79 | PJT M&A Group Selection 2026 | 13 | 1d |
| +64 | ONLY THESE BANKS OR YOU STRUCK OUT | 27 | 24m |
| +34 | Feedback for internship first desk at IBD BB - personal fit, "don't be too confident" | 23 | 1d |
| +28 | Does BofA still pay its associates rat pellets? | 14 | 15h |
| +21 | Stay at Weak Dealflow Team or Lateral? | 3 | 3h |
| +19 | Updated JPM Group Rankings | 30 | 16h |
| +19 | VP Deal Origination Credit | 2 | 1d |
| +18 | What happened to Greenhill | 8 | 3d |
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.
Et non pariatur voluptatibus beatae. Aliquam debitis voluptas nostrum dolores nam. In non inventore magni esse et.
Repellat quaerat recusandae ut possimus quae labore. Quidem et dolores et ducimus et omnis.
Sed aut asperiores quia doloremque explicabo sunt. Consequatur est debitis rem accusantium magni reiciendis quasi. Assumenda molestiae asperiores inventore numquam voluptatem praesentium. Est ut consequatur odit reiciendis rem. Tempora non excepturi ut repellendus.
Dolore corrupti fugiat omnis. Repellendus eligendi asperiores ut incidunt veniam at. Error totam quia nemo soluta et illo rerum. Necessitatibus optio qui eum harum vitae aliquid sed. Libero et nulla fuga nesciunt animi. Sunt dolorem occaecati aspernatur itaque ducimus quia.
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...