LBO firms forecast
Lets say a PE firm is looking at acquire firm X in an industry which is fragmented. Lets say that you run the LBO model and get below required IRRs in your modelled case due to geographic expansion and organic initiatives is not enough. If M&A is the only way to get solid IRRs - how is this forecast in the pre-transaction LBO model? Would the PE firm identify a number of real targets and then model as if these were acquired? if you need the full balance sheet, I guess you would need to do this to get realistic figures?
