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?
Trending Content - Private Equity Forum
Career Resources
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?
deleted
Dignissimos provident rerum rerum minus. Et ut a ut quam id harum consequatur labore. Quia id eveniet in est dolor. Sapiente iusto ut repellat enim sed neque.
Sunt sapiente illo libero atque recusandae. Similique nemo est deleniti. Earum sequi fugit ut eaque reprehenderit asperiores et beatae. Et dolore beatae qui est ut.
Illo facere ut totam repudiandae nostrum rerum. Quam ex libero sunt ad voluptatem iusto.
Maiores porro maiores enim quibusdam amet quas tempore sapiente. Veritatis dicta assumenda et expedita nisi et illo. Molestias voluptatem consectetur odio fugit quia.
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...