PE professionals, when you talk to a candidate who is in banking during an interview, and they start using banking lingo (e.g. north of 10x multiple / L+550 zip code etc.) do you think they are being professional or do you think they are just trying hard and it is fucking annoying?
personally the latter but was just wondering if im the only one who hates all these fucks
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If using jargon in a way that speeds up the conversation and demonstrates subject knowledge then it's acceptable.
OP mate, you're a prospective student going by your label - wayyy to early to feel so strongly / negatively about these things..
Anyone who says 'robust' non-ironically is dead to me.
I don't understand, as that's how people speak to both of your examples in banking and PE...
Do you expect people to say "the valuation was well over 10 times the Company's total enterprise value divided by earnings before interest, taxes, depreciation and amortization?"
Who cares if someone says "L+550" rather than "a rate equal to five hundred and fifty basis points above the London interbank offered rate."
Is there something I'm missing, here? Are you just saying if it sounds forced?
People love using jargon and complex words they don't know the meaning of in conversation, even if they don't make sense. I can't photosynthesis why people do this.
Why would you hate on someone saying "North of 10x"?
I'm a deal junky and I always talk in multiples e.g. "Yeah, got the deal for 6x, put on like 2.5x of debt, 0.5x of equity and convinced the owner to put 3x as an earnout".
I find that people that talk using multiples are people that actually have had some deal reps - cause, tbh the most important part is what multiple you buying and what's your debt multiple. The cucks are the one using fancy consulting buzzwords and shit like "60% debt to equity,".
Also regarding rates.. its pretty standard to say something like L+5.5 and a 7year amort. Only nerds are aware of the daily libor rate.
...tell me more about this fabulous deal structure