LBO modeling questions
Hey everybody,
as someone who's currently preparing for his PE interviews I have a couple of simple questions regarding building lbo models I hope you guys can answer me:
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How do I make the assumption what kind of loans I need and especially, when do I need to include mezzanine in my model? I have a case study coming up and wondered whether I could just source the debt from one TLA covering all debt or whether there is some way I need to split the debt into TLA, TLB and/or mezzanine.
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Is there a guideline how much minimum cash one should preserve throught the investment period?
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Is there a guideline how high M&A/transaction fees usually are? (e.g., 2% of offer value)
Your help is much appreciated!
Many thanks,
Kai