Trending Content - Private Equity Forum
| +72 | Does anyone believe their firm has a true competitive edge | 36 | 1d |
| +42 | Lateraling at senior associate / VP level | 11 | 3d |
| +33 | Do you regret doing PE? | 20 | 13h |
| +26 | Ares buying LGP...now what? | 8 | 18h |
| +26 | Imposter Syndrome: PE to Publics | 4 | 1d |
| +19 | Do PE VPs Always Have An Associate Under Them? | 12 | 15h |
| +17 | Francisco Partners Fundraise | 6 | 1d |
| +16 | GTCR vs BDT MSD vs MDP | 15 | 3m |
| +14 | Hours at MF Infra Funds in London | 1 | 1d |
| +14 | Setting the right LBO entry multiple without information | 3 | 4d |
Career Resources
Depends on the type of debt, but typically there'll be a clause where a change of ownership would trigger repayment.
is this common, esp. in mid cap deals? and do all tranches have to be paid back? and by whom?
Yes - most deals as Not Your Buddy Pal have a change of control that would require you to pay back the debt. However, some large cap buyouts / dividend recaps has seen "portable capital structure" where if another Private Equity firm of a certain AUM / size etc. purchases it, the debt can stay in place at the Private Equity BUYER's option.
Would assume in any middle market deal, all debt tranches will have a mandatory prepayment in a change of control and paid out by the new buyer. It will be one of the line items in the Uses of S&U.
Transactions are usually cash free, debt free. Seller keeps the cash and satisfies all of the debt.
Debt is usually paid off with the proceeds of the transaction before any cash goes to the seller.
Numquam quas cum omnis aut magni rerum perferendis. Quisquam recusandae ratione sequi. Totam placeat ab ut eius aut.
Id ut aut placeat quod cupiditate. Molestiae sequi impedit rerum non. Perspiciatis at rerum cupiditate aut quia et. Numquam reiciendis sint delectus dolorum.
Et blanditiis aperiam recusandae voluptatum repellat consequuntur doloremque. Rerum ut dolores veritatis placeat. Et est rerum quibusdam.
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...