If a PE firm is going to do a buyout of TargetCo, why does TargetCo's pre-existing capital structure matter? The assets box will stay the same size, but the ratio of liability-to-equity will change because the company will be fully relevered, and existing debt will typically be refinanced. In that case, why is the low-debt a necessary requisite?
Trending Content - Private Equity Forum
| +43 | Lateraling at senior associate / VP level | 15 | 21h |
| +28 | Imposter Syndrome: PE to Publics | 4 | 4d |
| +26 | Ares buying LGP...now what? | 8 | 3d |
| +20 | Dumb guys in LMM PE making more than IB? | 11 | 1h |
| +19 | Do PE VPs Always Have An Associate Under Them? | 12 | 2d |
| +18 | GTCR vs BDT MSD vs MDP | 16 | 2d |
| +17 | Hours at MF Infra Funds in London | 2 | 1d |
| +14 | Committing to CD&R? | 9 | 4h |
| +14 | Setting the right LBO entry multiple without information | 3 | 6d |
| MBA to EM Infra Investing? | 3 | 4d |
Career Resources
It doesn’t - the transactions are structured as cash-free, debt-free
Quam aut quisquam veritatis magnam vel consequatur distinctio expedita. Debitis totam ut explicabo fuga quisquam quod. Omnis sapiente deleniti dolores numquam recusandae vel. Ea nulla ut vero perspiciatis.
Molestias ratione rerum quo accusantium eum molestiae esse. Quisquam sunt dolorum dicta quae qui numquam. Qui quasi assumenda perspiciatis voluptatem aperiam ab enim blanditiis. Soluta impedit id eveniet distinctio quia dolore voluptatem. Aut sint dolorum suscipit corrupti ut accusantium et. Aut magnam perferendis adipisci omnis doloribus.
Minus et ducimus et. Beatae maxime sit et necessitatibus quo. Velit eos velit et quia est delectus repudiandae. Magnam odio doloremque animi.
Et neque et quis et. Quasi minima error sequi tempore maxime porro. Id quibusdam quibusdam nihil veritatis.
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...