What is everyone seeing around appetite from lenders for recaps for LMM consumer cos.
Think ~$10m in EBITDA, growing ~1.3x - 1.5x YOY.
Trending Content - Private Equity Forum
Career Resources
WSO Free Modeling Series - Now Open Through
November 30, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
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.
Sed quis sint fugit quisquam facilis aut. Illum consequatur in dolorum sapiente asperiores nostrum. Aut et assumenda assumenda repellat cumque rerum.
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...