How to account for SBC in an LBO
If you add back SBC when determining FCF available for debt repayment, how do you factor in the impact of SBC? In a DCF, you'd increase the number of shares outstanding but don't see how you could do that with an LBO. And if you don't add it back, then FCF avail for debt repayment would be lower than it actually is. Any thoughts would be appreciated - thank you!