LBO target screening criterion? Looking to use CapIQ screener to find targets
Hi,
Wondering if someone can help me with what they use in a Capital IQ screener to find potential LBO targets for a PE interview discussion?
I know that good targets should have a strong balance sheet (hard asset rich), strong cash flows to service debt, low capex, low working capital requirements. But how do you use these parameters and apply them to a CapIQ screener? Additionally, what ratios on the screener help check off these boxes and what numbers / levels are suitable to look at? ie what defines low WC requirements and is that TTM?
This is more for an interview case so doesn't need to be the best idea. Also for assumptions sake, let's assume its a mid-market PE shop with EV target size of $800MM - $2 BN if that makes a difference.
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