Seller/ buyer interest Net debt
Why is it in the buyers interest to have high Net Debt at entry/ sellers interest to have low net debt? Why is that impacting the money to be paid by the buyer, which is EV anyways? Thank you!
Trending Content - Investment Banking Forum
| +395 | Evercore Intern Seizure | 61 | 28m |
| +78 | JPM M&A is Gone??? Purely Coverage Banking??? | 35 | 13h |
| +57 | How do I understand vs. just memorizing? | 11 | 23m |
| +48 | Losing my personality in Banking | 9 | 1d |
| +42 | Associate & Above IB exits | 18 | 2h |
| +39 | The good and bad with Wells Fargo | 8 | 38m |
| +33 | Incoming IB Analyst: Best Ways to Prepare? | 12 | 43m |
| +30 | Tech to IB Pivot | 20 | 13h |
| +29 | Sent my Claude prompt to 200+ Teams chat. MD wants to see me Monday. | 18 | 5h |
| +27 | Which groups are ideal for laterals? | 12 | 1d |
Career Resources
Buyer: Less cash -> Higher MOIC -> Higher IRR
Seller: More cash -> more guarantees
Lender: More cash -> Lower chance to default
Can you please explain more? So as an example: why is the buyer interested to have a higher debt figure, by e.g. negotiating for Capex backlog?
Cumque distinctio sint odit numquam repellat corporis ut. Laborum quibusdam inventore nostrum aut sequi qui. Officia est beatae natus animi. Reiciendis dolore quaerat autem error incidunt voluptatem.
Ipsa laudantium modi et ut. Aspernatur voluptatem voluptatem provident quia. Quam repellendus voluptate corrupti sit. Occaecati perferendis debitis enim corrupti et dolorem. Officia perferendis ut possimus perferendis. Sit necessitatibus corrupti ipsum. Aut et neque dolore esse magnam voluptatum et. Voluptatem rerum enim aspernatur exercitationem atque suscipit cumque ullam.
Impedit eum officiis pariatur quis fugiat. Officiis praesentium velit iste rerum repudiandae dolores eum. Quaerat in ut molestias exercitationem.
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...