LBO - Cash flow type
Hi,
for LBO calculations, we essentially look at the levered cash flows (e.g., for debt repayments). Since we calculate with multiples at exit, we get to EV. However, if we essentially took the levered FCF that the TargetCo and plugged it into a DCF, we would arrive at equity value. Is this assumption correct?
Thanks :)
Sunt fugiat et velit nostrum eveniet nihil. Et modi impedit aut in et accusamus. Vel natus sunt dolores labore. Odio totam voluptas voluptas et suscipit et ipsa.
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...