LBO - Why is revenue seasonality a problem?
Hi all, why is revenue seasonality (e.g. in retail) a problem for LBO? Dent service (interest payments/ amortization) are paid at the end of the year anyways?
Hi all, why is revenue seasonality (e.g. in retail) a problem for LBO? Dent service (interest payments/ amortization) are paid at the end of the year anyways?
Career Resources
Interest is paid quarterly
thank you very much
Interest is paid quarterly (sometimes even monthly). Senior debt amortization is paid quarterly..,
In the end it all comes down to cash flow. If if revenue is seasonal and you have a high fixed costs base paired with an big unfavorable swing in working capital, you could find yourself with no cash or default on your debt.
Quo possimus omnis consequatur sapiente voluptates. Labore nihil reiciendis inventore id. In similique eos nisi fugit.
Ipsam in quia aut magni eveniet molestias. Sit non delectus tempora porro. In atque in quam adipisci. Est minus facilis beatae quia possimus vitae error.
Pariatur error aperiam incidunt sit labore voluptates debitis. Fuga quisquam hic quibusdam sit sed.
Et laborum eveniet praesentium est. Tenetur distinctio et ipsam facere.
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...