Let's say you know you will need $xx in CapEx as soon as you take over a company, but you don't want to have to rely on cash flows to fund this. How do you build this into an lbo model? Would you have to increase the total amount invested by the PE firm? What would be the implications on all three financial statements?
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Odd question, but considering this injection of Capex occurs simultaneously with the transaction close, I would asume this would simply be a use of cash in your sources and uses. Like you said, the new capital, whether debt or equity, would have to increase by the additional capex the business needed to function.
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