Consumer LMM Recap Appetite
What is everyone seeing around appetite from lenders for recaps for LMM consumer cos.
Think ~$10m in EBITDA, growing ~1.3x - 1.5x YOY.
What is everyone seeing around appetite from lenders for recaps for LMM consumer cos.
Think ~$10m in EBITDA, growing ~1.3x - 1.5x YOY.
+26 | VP Level - when to follow up after final round | 10 | 1d | |
+23 | Sr Asso / VP Unemployment Check-in | 6 | 1h | |
+20 | Vista Lateral Associate | 12 | 9h | |
+16 | IB/PE Lifers, Was It Worth It? | 5 | 1d | |
+14 | EBITDA walkdown to cash flow for debt service | 10 | 5d | |
+14 | Anyone here work at 777? | 15 | 3h | |
+14 | Why is Blackstone so dominant? | 9 | 3d | |
+14 | Boss says one thing and does another | 7 | 10h | |
+13 | Public company LBO | 4 | 7h | |
+12 | Late to the PE Recruiting Where Do I Even Start | 2 | 5d |
Career Resources
Able to share additional detail (sub sector, FCF conversion, thesis, valuation)?
3-4x range
I don't want to get too specific, but apparel, and 18% EBITDA margin (unadjusted).
No real valuation, as it hasnt taken external capital on.
Might be tough if it's sponsorless or the company hasn't transacted so far
Agree with others with this additional context - sounds like a 3x div recap
Ignore my title
Looking to hire a banker with consumer and private debt expertise...?
Direct Deal or Pro Rata bank deal? Latter will prob top out at 2x max at that size. Might be able to get 3x ish for a Direct deal but it'll cost you. Industry + lack of Sponsor w a fund behind it will be big draw backs + the relatively small size.
Generally not an environment where lenders want to see people taking money off the table, esp. if a consumer discretionary name. Especially true if there's a lack of Cash Equity in the biz.
Probably depends a lot on fashion risk, value vs. luxury, etc. I'd still think 2x is reasonable if you're looking to take out minority / rollover folks. If you're talking divirecap, then may get some push back. Obviously expensive capital regardless.
Nemo non sed eos ex iusto sit reiciendis nostrum. Perferendis vero sint et et ut et. Atque enim libero blanditiis saepe vitae saepe et.
Praesentium perferendis et vel nobis. Vero nulla consequatur voluptates saepe ut velit necessitatibus. Autem officiis odio explicabo impedit esse deleniti maiores illum. Voluptatibus voluptatibus maiores enim sunt facere aut. Similique minima dolorum quasi sed voluptatum quia eligendi unde.
Et laudantium eaque quaerat velit. Dignissimos ut consequatur omnis veniam autem. Molestiae ea commodi ex possimus alias qui officia.
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...