Assessing Potential Exits in LBO

How do you assess potential exits in an LBO? How do you predict which exit would be most likely, and if an exit is likely at all?

How do you answer the question "Why does the buyer in 5 years not just buy the company now?" 

 

Answer to why buyer in 5 years doesn't buy now is risk profile, execution, and uncertainty. In 5 years more growth occurs and the company's uncertainty has changed to a different form that the new buyer is comfortable with (again this doesn't mean necessarily less uncertainty or more profitability, etc.)

 

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