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 :) 

1 Comments
 

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