Net cash position at LBO exit
Is having a net cash position at the exit year of the LBO normal if leverage is capped at a relatively low multiple and how can this issue be solved?
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Unless you've accumulated a ridiculous amount of cash, it's fine.
If you build up enough cash over the hold you just pay yourself cash dividends.
The net cash position is ridiculously high in comparison to the net debt at the beginning of the holding period.
How would you model the cash dividends in the LBO?
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