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!
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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?
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