Is it true that Apollo PE does not look at EBITDA?
Instead they focus all analysis solely on unlevered FCF? This makes perfect sense and I'm surprised more sponsors do not do this. Can anyone verify?
Trending Content - Private Equity Forum
| +72 | Does anyone believe their firm has a true competitive edge | 36 | 23h |
| +42 | Lateraling at senior associate / VP level | 11 | 2d |
| +27 | Do you regret doing PE? | 20 | 1h |
| +26 | Ares buying LGP...now what? | 8 | 6h |
| +25 | Imposter Syndrome: PE to Publics | 4 | 1d |
| +19 | Do PE VPs Always Have An Associate Under Them? | 12 | 3h |
| +15 | Francisco Partners Fundraise | 6 | 23h |
| +14 | Setting the right LBO entry multiple without information | 3 | 3d |
| +13 | GTCR vs BDT MSD vs MDP | 11 | 3h |
| MBA to EM Infra Investing? | 3 | 1d |
Career Resources
I mean don't all funds inherently do this? This is how an LBO cash waterfall works.
Sure for the creation multiple / set-up multiple many will look at a EBITDA multiple as a shorthand. For capital intensive industries use an EBIT multiple which is more or less FCF.
The funds that look at a capital intensive auto-manufacturing business and state something along the lines of "Look it's so cheap - it's only 5x of EBITDA!!!" should not be ones that you join.
Qui et et qui. Ex nulla facilis ipsum nobis delectus. Ut mollitia voluptatem voluptas veritatis laudantium explicabo dicta. Quia sint aliquid corrupti architecto. Ad dicta et earum labore.
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...