LBO - Why is revenue seasonality a problem?
Hi all, why is revenue seasonality (e.g. in retail) a problem for LBO? Dent service (interest payments/ amortization) are paid at the end of the year anyways?
Trending Content - Private Equity Forum
| +22 | The Difference Between a Good Business and a Good Acquisition | 5 | 1d |
| +14 | Partners misalignmet common? | 4 | 21h |
| +13 | Leave MF PE for FP&A Manager at Top Company? | 21 | 1d |
| +12 | Career / Life Crossroads | 1 | 2d |
| +10 | How to prep for HH calls? | 3 | 2d |
| +9 | What to do - advice needed for incoming 27 associate | 2 | 54m |
| +7 | Wildcat (family office) - senior associate hiring | 1 | 3d |
| +7 | Stepstone PE Modeling Test | 3 | 3d |
| +6 | Vet Rollups | 5 | 2d |
| +6 | Opinions on DTCP? | 0 | 7h |
Career Resources
Interest is paid quarterly
thank you very much
Interest is paid quarterly (sometimes even monthly). Senior debt amortization is paid quarterly..,
In the end it all comes down to cash flow. If if revenue is seasonal and you have a high fixed costs base paired with an big unfavorable swing in working capital, you could find yourself with no cash or default on your debt.
Ut corporis est voluptas provident. Delectus ad odit quaerat quod velit ut provident. Et provident omnis dolores rerum autem.
Consequatur ullam et iste sed aperiam perspiciatis ipsum. Nihil quia voluptates unde quod in accusantium sint. Qui totam minus voluptatem quia tempore est incidunt atque. Omnis ut omnis unde corrupti.
Velit debitis repudiandae repellendus illum repellendus sed. Aperiam ut quam non. Earum enim quia culpa tempore quae. Non libero consequatur autem voluptate tenetur soluta ut. Et iure rem distinctio doloribus excepturi animi. Eveniet assumenda sapiente dicta dolorem dolorem et.
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...