How do you typically consider the investment amount in a transaction that you intend to back-lever shortly after an acquisition?
For simplicity...suppose I acquire a company/asset for $100. One month later, I get $50 of debt and return $50 to equity. Six months after that, suppose I sell the company/asset for $150.
Would it be inappropriate to calculate the MOIC on the post-levered investment (and note calculation is based on a back-levered amount)?
| +55 | Predicted Net Worth in Trodden Finance Path by 60? | 20 | 3d |
| +26 | Reference checks after final round | 11 | 6h |
| +25 | What do you think of PE Value Creation Careers in 2026? | 7 | 2d |
| +20 | LT Career Path after MF PE Associate Program? | 7 | 12h |
| +18 | Is the lifestyle really better? | 17 | 8h |
| +17 | Those who left PE for Corporate, why? | 14 | 3h |
| +12 | NY LMM PE Recruiting | 3 | 4d |
| +11 | If you don't make it to the top: IB or PE | 8 | 4h |
| +10 | Is it too late for me? (Rising College Junior) | 4 | 4h |
| +9 | AI PE startups | 1 | 16h |
Career Resources
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.
Dicta consequuntur ipsa rerum perspiciatis dolores rem. Quaerat vitae earum cum. Ipsum vitae natus quia voluptatibus et est vel.
Quia voluptate aliquid quod consequatur. Eum accusantium architecto ut et nulla est placeat. Qui corrupti quis est et. Fugit eum ipsa fugit odio.
Sequi expedita amet illo odit adipisci asperiores nesciunt. Velit ut non aspernatur autem est ipsa fuga saepe.
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...