Are LBO multiples structurally too high right now?

Given the current interest rate environment, I am curious how people think about LBO entry multiples today.

Many deals in the past few years were done at very high EBITDA multiples while debt financing has become more expensive.

Do you think this means:

PE returns will structurally compress

Funds will rely more on operational value creation

Entry multiples will eventually reset lower

1 Comments
 

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