Co Investment LBO Impact
Hey - I've noticed a lot of co-investment roles lately, but there seem to be limited resources on co-investment modeling. Could someone walk me through the key impacts on an LBO when there are co-investors for a Series C or D investment?
I assume you need to calculate the post-money valuation by adding the total amount being invested in the round to the pre-money valuation. Then, you would divide the amounts invested by the post-money valuation to determine each investor's ownership percentage. After that, I would calculate the implied equity value as I normally would in an LBO and apply the investor ownership percentages to the total equity value to evaluate returns per investor.
Am I on the right track, or are there other considerations for co-investors? I appreciate any insights.
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