1. Search Results

  2. Can one get rid of a company's pensions during LBO?

    Hi guys: For companies with large pension obligations, is it possible to get rid of them during LBO through some kind of structure, or would that only happen during bankruptcy? Thanks! LBO to Sunday, April 14, 2019- 12:55am Canadian Pension Plan Investmen ...

    43 comments - 4 silver bananas - Apr 14 2019 - 1:00am -

  3. Chess for finance

    I'm a PE associate looking to further my chess game- currently about 1100 blitz on chess.com. Teach me chess and I'll share all I know about recruiting, IB, PE. This is for NYC.:) chess recruiting banking private equity LBO e4 e5 nf3 to Sunday, ...

    41 comments - 7 silver bananas - Sep 30 2018 - 5:05pm -

  4. Demystifying GSO Capital (Blackstone)

    Mod Note (Andy)- as the year comes to an end we're reposting the top discussions from 2015, this one ranks #33 and was originally posted 6/9/2015. I've been searching info about these guys for a while now. There are few threads on WSO with some ...

    45 comments - 21 silver bananas - Mar 30 2018 - 5:19am -

  5. Private Equity: How to Analyze a CIM Effectively?

    All, I work at a middle-market fund (started about 8 months ago here) and wanted to learn from someone qualified (associate level or above) who works on the buyside what the best and most efficient way to analyze a CIM is (Confidential Information Memoran ...

    45 comments - 11 silver bananas - Mar 28 2018 - 2:04pm -

  6. Loan and revolver quantum & cost

    Hi, Say a company wants to refinance existing debt on the back of $40m EBITDA as its situation has improved over the past 3 years.- Could a lender extend a Unitranche loan based on Ebitda leverage covenant + revolver based on A/R?- If so: what metrics wou ...

    15 comments - 2 silver bananas - Apr 12 2019 - 2:31pm -

  7. Two layers of circular debt

    Monkies, I am a first year real estate analyst at a large development firm in Miami, Florida. My modeling skills are from my perspective pretty good, I've learnt a ton from the senior guys at my office and I make models as a side gig for other real e ...

    28 comments - 2 silver bananas - Nov 15 2017 - 1:30pm -

  8. 3 statement modelling test for IBD SA

    Hello I have an upcoming superday with an M&A boutique. Part of it involves making a 3-statement Excel model in 1 hour using some given assumptions. My background is finance but ive never made a 3-statement model using Excel before. Does anyone have a ...

    15 comments - 2 silver bananas - Dec 2 2018 - 2:38pm -

  9. LBO Models in Your Head

    Has anyone ever been asked to do an LBO and M&A models off the top of their head? Pen & Paper given with financials on a sheet but not much time (around 3 minutes) to calculate and walk through answer. Basically you have to calculate as you go thr ...

    28 comments - 0 silver bananas - Apr 12 2019 - 2:57pm -

  10. LBO paper model examples?

    Hi fellow monkeys (and humans)- what's a good source (website / book) to get a hold of examples of LBO paper model type questions asked of candidates in interviews? A forum for lbo models was created earlier, with the view point of helping candidates ...

    52 comments - 0 silver bananas - Nov 14 2016 - 6:57am -

  11. PE LBO Modeling Test

    Just a few questions regarding typical PE interview LBO modeling tests, specifically: 1) Typically how much time is alloted to build a model? 2) Given time contraints, how much is detail should you provide?(i.e. is it better to be detailed and include PIK ...

    68 comments - 0 silver bananas - Dec 13 2016 - 2:03pm -

  12. LBO'ing a Local Business

    There are a few threads on this site regarding the idea of wealth generation through purchasing a so called "non-sexy" business (i.e. gas stations, laundromats, etc.) for the long-term cash generation potential. There have also been a few really ...

    43 comments - 3 silver bananas - Jun 5 2014 - 1:06pm -

  13. How are LBOs for companies trading at 30X EBITDA financed?

    I work in the lower middle market space (commercial and industrials) where companies typically trade for 6-7x LTM EBITDA. These deals are typically financed with 3-4 turns of senior debt, a turn of mezz, and the rest funded via equity. How are LBOs of tec ...

    17 comments - 0 silver bananas - Feb 26 2017 - 3:27pm -

  14. Stumbled upon a piece of financial history in the office today...

    By pure chance, as I was looking for something inside the office supplies/storage room, I came across an abandoned old box. I almost ignored it but something caught my eye, and I ended up digging up this old deal tombstone... arguably one of the most famo ...

    29 comments - 3 silver bananas - Jun 21 2014 - 12:58am -

  15. Growth Equity vs. LBO Shops

    which is more interesting and respected? growth equity or LBO shops? why? LBO leveraged buyout LBO fund ...

    28 comments - 0 silver bananas - Oct 10 2016 - 4:45pm -

  16. Understanding the Investment Banking industry

    Hi All! I've been on the forum for a while, haven't contirbuted much and have more-often-than-knot been latently absorbing the knowledge from others. All of this great info has nevertheless left me a bit confused about the industry and the assoc ...

    21 comments - 0 silver bananas - Mar 29 2016 - 11:09am -

  17. is there a difference between LBO and 3 statement model?

    I've seen examples of DCF, trading comps and precedent transactions models but I've never seen a fully-integrated 3 statement model. Just wondering if building an lbo model is the same thing as doing the 3 statement model with more bells and whi ...

    28 comments - 0 silver bananas - Apr 11 2017 - 7:58pm -

  18. Using Cash in LBO

    Hi all, I was studying technical for the fall recruitment and had a question regarding the type of financing one would use for a LBO. I realize that it wouldn't be a LBO any more if one uses cash but the guide was asking why a PE firm would use lever ...

    19 comments - 0 silver bananas - Jul 22 2016 - 9:31am -

  19. Forbes 400 Richest Americans

    As if hearing Edmundo's question of who is rich, Forbes magazine released their list of the 400 richest Americans. Topping the list as usual is Microsoft billionaire Bill Gates, with Bershire's Warren Buffet in 2nd and Oracle's Larry Elliso ...

    26 comments - 1 silver bananas - Sep 23 2010 - 6:32am -

  20. How do you model an earn-out in an LBO model?

    I'm trying to model an LBO where I am the buyer and am offering to pay 8x $100M LTM EBITDA, but 5x up-front, with the rest paid over 3 years as revenue targets are hit. How do you do this on the model (I'm asking about the concept, not the mecha ...

    21 comments - 0 silver bananas - Dec 13 2016 - 2:05pm -

  21. Romney "looting" example- please explain these profits

    How the heck does one make millions off of investing in a company that goes bankrupt and/or gets shut down? How do the lenders get paid back, how do the numbers work? Ideally I'd like to see a model but that's obviously a bit much to ask. Anothe ...

    26 comments - 0 silver bananas - Jan 12 2012 - 2:20pm -

  22. In need of a sample of LBO model!

    In need of a sample of lbo model. Got a ' financial modelling ' round of interviews next week. Don't know how to prepare for it. Coming from the consulting world, so, a bit worried. Would appreciate any industry-standard LBO model. My email ...

    22 comments - 1 silver bananas - Apr 11 2017 - 7:58pm -

  23. Cash on Balance Sheet after an LBO

    Hello everyone, Here is a question about LBO that I have been thinking for a while. Let's say a company that has 100M cash and 400M debt on its balance sheet. Currently equity value is 700M. So... Enterprise Value = 700M + (400M- 100M) = 1B And we ar ...

    15 comments - 2 silver bananas - Dec 28 2016 - 3:36am -

  24. What is the best financial modeling training program?

    Can anyone recommend the most ideal financial modeling training course- (assuming it will be self-taught)? Without price being an issue- I am looking for a single program or a combination which will be the most practical and appreciated by the Bulge Brack ...

    24 comments - 1 silver bananas - Oct 10 2016 - 4:40pm -

  25. Real Estate Sale and Leaseback LBO

    Hi all, I am currently looking at a target for a potential LBO. The target owns almost all of its retail stores and there have been suggestions of selling these stores to a REIT. Obviously, the stores would need to be leased back. I am no expert with real ...

    14 comments - 1 silver bananas - Mar 17 2017 - 2:35pm -

  26. The Decade's Movers and Shakers

    Who and what were they? With 2010 fast coming to a close, we say goodbye to another decade and enter one anew. 2001-2010 was not without its drama; we saw the horrors of terrorism with 9-11, we had the wars in the Middle East, there were epidemics, massiv ...

    18 comments - 0 silver bananas - Dec 18 2010 - 7:58pm -

  27. Need LBO Model Help

    Hello Fellow WSOers, I am stumped thinking how I can about setting up the following LBO after being given a CIM: For sources and uses, assume a purchase of 65% of the company and a equity rollover equal to 35% of the purchase price. Assume leverage of 3.5 ...

    13 comments - 1 silver bananas - Jan 28 2017 - 12:22am -

  28. Analyzing Capital Structure

    Hi, I am unsure of how to properly analyse the capital structure of a firm instead of just looking at how much debt and equity the firm has. I need a proper framework. Anyone has any ideas? Is a Leveraged Buyout Model useful as a framework? Cheers! LBO le ...

    23 comments - 0 silver bananas - Jul 31 2012 - 9:06pm -

  29. LBO- What to do with extra cash?

    In an LBO scenario, if the company has extra cash after paying mandatory debt amortization, what's the most Accretive thing to do with that extra cash (use it in a discretionary sweep to voluntarily prepay debt; pay yourself a dividend; etc.)? LBO ...

    17 comments - 0 silver bananas - Sep 30 2013 - 3:53am -

  30. What happens to cash when you buy a company?

    Hey guys, Would really appreciate some help with a probably really basic accounting question. When you purchase a company, let's say through an LBO.... what happens to the cash of the target? Does the seller take it all with them? So, once you own th ...

    13 comments - 0 silver bananas - Feb 26 2016 - 12:35am -

  31. how does LBO analysis imply a share price?

    I'm new to LBO in a LBO analysis, where do you find the minimal price that an acquirer would pay for a company? Can I use total uses of funds/shares outstanding as the implied share price? LBO No ...

    17 comments - 0 silver bananas - Nov 9 2014 - 12:34am -

  32. Dividend Recap Model

    Hi guys, I am currently building my own lbo model for one of my course and I'd like to include a dividend recap in year 3 as I assume I wasn't able to get a lot of debt at the entry. I looked in the archives but couldn't find anything perti ...

    14 comments - 0 silver bananas - Feb 3 2018 - 1:45pm -

  33. M&A / LBO models from scratch

    Hello everyone, I have been working for almost a year now in IB. Several of my peers are interviewing for PE / HF / VC etc. I am not. Frankly, my modeling skills are nowhere near where they would need to be for me to enter this process. We use a standard ...

    20 comments - 0 silver bananas - Mar 24 2012 - 8:59pm -

  34. Value creation deconstruction in LBOs

    Hi guys, One question I have encountered in the past is to analyze the value creation of an LBO. My first thought on this was to deconstruct the IRR or MOIC to see how each individual value driver (I would say the main ones are a) multiple expansion, b) o ...

    14 comments - 0 silver bananas - Oct 10 2015 - 12:27am -

  35. What happens after an LBO?

    After you do an LBO, does the PE firm have complete control over the acquired company's operations? Does the PE firm perhaps insert one of their own guys into the company's management to help run it? or does the acquired company continue to do t ...

    16 comments - 0 silver bananas - Jul 19 2012 - 1:06am -

  36. Interview at KKR

    widely regarded as the 'baller' firm in finance, i could hardly believe my shit when i got called for an interview with them, based on a speculative application (yep, you read that right).. finance interview lasted 30mins, i went in confident, h ...

    22 comments - 0 silver bananas - Jun 14 2010 - 9:37am -

  37. Leveraged buyout- Ownership 100%?

    Hi everyone was reading up about LBOs. In such instances, is it always necessary for the company to purchase 100% shares of the company? Meaning to say that post-acquisition it is the sole shareholder of the company. My interpretation of the text online i ...

    12 comments - 1 silver bananas - May 13 2016 - 10:49am -

  38. LBO model: impact of raising entry an exit multiples on IRR

    why does IRR decrease if both entry and exit multiples increase equally? eg from 6x to 8x each. Is it because more equity is needed as the leverage ratios stay constant requiring a higher equity % to purchase.. LBO ...

    15 comments - 0 silver bananas - Jan 17 2014 - 6:12am -

  39. Distressed Debt to Private Equity

    Hey guys, I was posed a really interesting question recently, and I had no clue how to answer it so I wanted to throw it out to you. A friend of mine works for a top distressed debt shop (Monarch, Sankaty, Oaktree) that she got into directly out of colleg ...

    19 comments - 1 silver bananas - Jan 22 2010 - 6:51pm -

  40. Why should sponsor care about previous leverage of target company?

    Hi guys, I've been thinking about the following issue today: Say you have a company with $100m EBITDA, and you want to LBO it at EV = 10x EBITDA = $1bn. Let's also assume that your (you = the sponsor) maximum Debt/ EBITDA ratio is 6x, so you fin ...

    11 comments - 0 silver bananas - Nov 26 2015 - 1:23am -

  41. LBO valuations-- I really do not understand it

    Hello, I would like to know if someone could provide some information on a couple of questions I have regarding LBOs and valuating them. I am working on a model which has projections going out 6 years. I am told to assume the terminal value is 10.4 times ...

    19 comments - 0 silver bananas - Apr 8 2009 - 8:00pm -

  42. Paper LBO model

    I've heard in some interviews of candidates being asked to construct a paper lbo model, where they are given a bunch of information and have to walk through the LBO math. Could someone provide an example of how this plays out? What information will y ...

    17 comments - 0 silver bananas - Feb 19 2011 - 11:30pm -

  43. Model unbalanced by decimal places

    I have a model I developed that is of medium complexity, and I have an interesting problem that I am not sure how to resolve, thought I'd hit you guys up to see if anyone has dealt with this before. ...

    15 comments - 0 silver bananas - Nov 20 2012 - 10:28am -

  44. How do you model an LBO with a strategic instead of private equity buyer?

    Long time lurker, first time poster. Guys, I am interning and have a question (maybe I am overthinking this here). We have a buy side mandate and our client is going to use 70% debt to fund an acquisition of a competitor. Boss wants me to combine target a ...

    14 comments - 0 silver bananas - Jun 13 2013 - 2:29pm -

  45. Secondary Buyouts?

    Was just reading this article (http://finance.fortune.cnn.com/2014/04/28/private-...) about the stock of private equity backed companies that should be nearing maturity from a holding perspective for financial sponsors. ...

    13 comments - 0 silver bananas - May 6 2014 - 12:12am -

  46. Does pre LBO debt matter when screening for potential LBO candidates

    Hi, I am about to write my master thesis from a PE firm perspective and I am looking for potential LBO candidates. I have come across many threads where it is stated that one of the desirable characteristics of a LBO candidate is a low pre-debt levels. I ...

    12 comments - 0 silver bananas - Mar 18 2015 - 11:17am -

  47. LBO logic confusion?

    I don't understand how minimizing cash and maximizing leverage leads to higher returns? I mean, how does using $2B of equity and $3B of debt boost your returns more so than $3B of equity and $2B of debt? I keep reading explanations about this online ...

    11 comments - 0 silver bananas - Nov 14 2015 - 1:46pm -

  48. How much debt paydown is necessary by Year 5 in an LBO?

    I am assuming 80%+ for the typical business. What if you're investing in a slightly younger company that has solid growth potential? I am modeling in only 5x entry leverage, but cash flow yield is not strong enough to support 80% debt paydown due to ...

    12 comments - 0 silver bananas - Dec 25 2014 - 9:45pm -

  49. Short-Form LBO Modeling?

    Does anyone know what the best way would be to do a short-form lbo model? This is without full-blown balance sheet or cash flow statements. Thanks. LBO ...

    14 comments - 0 silver bananas - Mar 20 2012 - 1:28am -

  50. The Carlyle IPO: Long Time Coming

    For a company with close to $100 billion AUM and a legacy which spanned Wall Street's most profitable decades, Carlyle is flying mighty low beneath the radar these days. After several false starts, the Carlyle IPO [/embed] seems back on track and set ...

    11 comments - 0 silver bananas - Jun 13 2011 - 12:45pm -

  51. LBO Question- Clarification?

    So I got asked what I knew about LBO valuation in an interview, and although I haven't yet touched on this in my classes, I had recently read up on it on Investopedia. I mentioned, per Investopedia, that it is when a company purchases another company ...

    12 comments - 0 silver bananas - Apr 22 2016 - 8:06am -

  52. Why aren't PE lenders more predatory?

    Since my understanding of private equity is pretty limited, this might have an easy answer that I'm just missing. Sorry if it's a dumb question. In general when a PE shop acquires a target, the lenders have a stipulation that if payments are mis ...

    13 comments - 1 silver bananas - Jan 11 2010 - 3:51pm -

  53. Building a model for my PE interview

    I have an interview at a MM PE firm in a little over a week and i'm looking in to building an LBO or other valuation model that i can bring and describe in depth in my interview. I wasn't asked to do this for the interview, but I came up with th ...

    13 comments - 0 silver bananas - Jun 11 2011 - 4:26am -

  54. Preparation for 2 hour LBO modelling test

    Hi all Invited to an AC for a boutique advisory focusing on aerospace and defense (in London). Told that i will be doing a 'simple' 2 hour modelling test on Excel that is likely to be either an LBO or Merger Analysis test. Have only ever done DC ...

    6 comments - 3 silver bananas - Nov 26 2018 - 10:21am -

  55. LBO book

    Folks, Can someone tell me the best book on LBO? Sending my list below. I am not sure if anyone has a better book that is more comprehensive and structured. 1.Capital Structure Decisions in Insitutional Buyouts 2.Post-Investment Value Addition to Buyouts: ...

    11 comments - 0 silver bananas - Feb 1 2017 - 1:33pm -

  56. Is this still considered a LBO?

    Is it still considered a LBO if a public corporate acquires another corporate (private) using 100% debt? I know the term LBO is typically used in the context of a sponsor using a significant amount of leverage to acquire a company, but wasn't sure if ...

    7 comments - 2 silver bananas - Mar 13 2018 - 8:58am -

  57. Another Leveraged Buyout Question

    I know most LBOs are stock acquisitions, but are LBO transactions ever structured as asset sales? Where the sponsor only acquires certain assets & liabilities from the target. Does the tax base ever change in LBO transactions? Also, how do LBOs close ...

    11 comments - 1 silver bananas - Jul 31 2012 - 9:06pm -

  58. Can you use your target company's own cash to fund a leveraged buyout?

    I am looking at this M&A model, and it says that a certain percentage of the cash used in the leverage buyout is coming from the target companies own balance sheet. What is the logic behind this? How can you use a company's own money to buy itsel ...

    5 comments - 1 silver bananas - May 12 2019 - 5:11pm -

  59. Implications of LBOing a high growth company

    Can anyone provide any insights as to the likelihood of this? Why and why not either a financial sponsor or strategic buyer would do this. Thanks. LBO ...

    10 comments - 0 silver bananas - Jun 10 2014 - 11:29am -

  60. LBO sources and uses

    Hi all, I have a question relating to the sources and uses in an LBO-model. Let's take a hypothetical transaction (on a cash and debt free basis): Enterprise value: 100m Cash: 2m Debt: 10m = Equity value: 92m The total debt can be specified into: Ban ...

    8 comments - 1 silver bananas - Oct 27 2016 - 11:52am -

  61. Help: LBO Model Terminal Value differences

    Need help, practicing with an lbo model for a pharma company. All projections are in line, the bs balances. When it came to DCF, wanted to calculate TV by using both the perpetuity growth and multiple approach. The values are coming back very different. I ...

    11 comments - 0 silver bananas - Aug 19 2011 - 12:00am -

  62. Paper LBO Timing

    Hi guys, For those of you who've been through PE recruiting- how long does it typically take you to do a paper LBO (a full paper LBO, inclusive of all 5 year FCF calculation etc)? How long should you take? Is the interviewer just sitting in front of ...

    7 comments - 2 silver bananas - Aug 10 2017 - 2:14am -

  63. Does Anyone Own any WSO Clothing?

    I have been thinking about buying one of the hooded sweatshirts. There are many benefits I see to buying one: 1) They are actually pretty nice 2) I'm sure you would all agree that you can never have too many sweaters or t-shirts 3) I really like this ...

    11 comments - 1 silver bananas - Mar 13 2011 - 6:55am -

  64. Barbarians at the Gate- the movie

    I absolutely love the movie, the characters are mindblowing. This movie needs more appreciation, IMO at par / better than Wall Street! Thoughts? http://www.amazon.co.uk/Barbarians-Gate-DVD-Region... LBO Favorite Movies ...

    11 comments - 0 silver bananas - May 2 2010 - 3:31pm -

  65. Advice for Bank Job

    Hi guys, I go to a school that is ranked 45-40. I have had two real estate internships and I want to break into banking. I went from a 2.87 gpa for my first 2 years to 3.27 gpa that I round to a 3.3 on my resume. I am not qualified enough for an analyst p ...

    6 comments - 3 silver bananas - Mar 26 2018 - 10:47am -

  66. How would you classify this deal and what kind of template would you use?

    I am working on a model for a small firm that is looking to purchase a majority share of a division of a publicly traded company. The problem is, I'm not sure how to structure it--it it an asset sale? LBO? To clarify, let's say that PE Capital i ...

    10 comments - 0 silver bananas - Feb 28 2011 - 4:26pm -

  67. purposes for LBO model?

    Could someone please clarify for what purposes lbo models are actually created? I understand one reason is for valuation, though I've heard it's not used too frequently by investment banks, but for what kinds of engagements would investment bank ...

    10 comments - 0 silver bananas - Aug 6 2010 - 12:17pm -

  68. LBO the Grocers

    Anyone have a view on the long term potential of a large cap grocer LBO? SWY, KR, SVU. All trade at anemic ev / ebitda multiples. KR and SWY are levered less than 2x on a net debt to ebitda basis. Predictable cash flows. Majority of Walmart impact is alre ...

    9 comments - 0 silver bananas - Jun 17 2010 - 12:01pm -

  69. PE associate interviews: 4-hour LBO

    Guys, can anyone share his experience with the long version of the modeling case study for PE associate positions? I found some info here but was wondering more specifically about the PE lbo model. How detailed are the requirements given to the candidate? ...

    8 comments - 0 silver bananas - Dec 27 2014 - 4:46pm -

  70. post LBO?- fresh capital for growth?

    After a PE fund buys a company via LBO, is it normal for the PE fund to inject fresh capital for growth into the company or perhaps for a bigger cash reserve for higher interest payments? would this done by issuing more shares in the company? any info is ...

    10 comments - 0 silver bananas - Apr 10 2009 - 12:13am -

  71. LBO debt not converted to Cash?

    Hi I am wondering when debt goes into the company, we adjust the BS by adding additional debt to liability, but wouldn't cash also increase on the asset side? private equity LBO buyout debt ...

    8 comments - 0 silver bananas - Oct 1 2014 - 4:57pm -

  72. How to model an LBO with minority stake

    What would you do in the case where a financial sponsor makes a minority investment? What is the equity contribution amount? This is assuming the management team stays on. For instance, if a PE firm buys a 30% stake in a company, requires the firm to take ...

    8 comments - 0 silver bananas - Jul 25 2016 - 7:48pm -

  73. Breakdown of LBO exit strategies?

    What are the different ways in which an LBO is exited? Approximately what percent of large LBOs (EV > 100mm) are exited in that manner? IPO-?% Private sale-?% Really appreciate this because for my thesis I'm trying to figure out whether only count ...

    9 comments - 1 silver bananas - Dec 27 2011 - 5:51pm -

  74. Can you call bank debt?

    Have a technical interview in 6 hours, and just one technical thing I need help on. Anyone with knowledge of bank debt, particularly in context of LBOs please chip in. Anyhow, my question is, I know that call provisions are usually not common place when i ...

    8 comments - 0 silver bananas - Jul 14 2014 - 8:05pm -

  75. LBO assumptions question

    Apologies in advance if this is in the wrong subforum. I'm learning about LBOs and this one exercise I'm attempting mentions that another PE fund owns a quarter of one of the potential candidates and invested in the company three years ago. What ...

    8 comments - 1 silver bananas - Mar 19 2014 - 12:19pm -

  76. LBO Valuation Range

    How do you arrive at the valuation range running an LBO? I assume the standard way is using a range of IRRs (in this case, we are saying the valuation is between 25-30% IRR). I just have no idea how to back into the exact EV /entry multiple using the IRR. ...

    9 comments - 0 silver bananas - Nov 1 2009 - 6:48pm -

  77. Beginner LBO Modeling questions

    I'm trying to create an LBO for a case. This might be a very stupid question, but why does a DCF model add back depreciation, but the lbo model does not in the calculation of free cash flow? (Would it be wrong to add depreciation in an LBO?) What are ...

    8 comments - 0 silver bananas - Apr 10 2012 - 10:42pm -

  78. LBO in SA interview?

    Should IBD SA candidates expect to be quizzed on LBO modeling if they have no prior experience indicating that they should know it? I know this is unlikely in first rounds but what about in final rounds? interview LBO ...

    8 comments - 0 silver bananas - Jan 20 2011 - 5:05pm -

  79. Tips on how to build a quick LBO?

    Hey guys- It's been a while since I've posted here, but I've just started working at a top MM boutique and I've begun practicing for buyside opportunities. While I am primarily interest in working at a L/S HF, I wanted to get to get ti ...

    6 comments - 0 silver bananas - Aug 13 2016 - 7:30pm -

  80. LBO model- Few questions

    A few questions about LBO 's. 1) Do sponsors refinance existing debt because they have to or they want to, and why? 2) I was having a hard time including interest payments without a circular reference, is there a common way around this? 3) In general ...

    7 comments - 0 silver bananas - Apr 22 2016 - 8:13am -

  81. RJR Nabisco LBO: financial specifics, entry and exit?

    I've been trying to find KKR 's IRR from this LBO. Figured this information would be fairly easy to find, but can anyone point me toward the financial specifics of this transaction (entry, exit)? LBO KKR ...

    7 comments - 0 silver bananas - May 16 2015 - 3:49pm -

  82. Question on LBO Financing

    Hi guys, I got a question regarding LBO Financing. Consider: (1) A PE firm collects cash in one of its funds, say fund A that has now money for more than one acquisition. (2) The firm finds an attractive target T and wants to buy it. Now what I don't ...

    7 comments - 0 silver bananas - Jun 5 2012 - 5:17pm -

  83. Burger King to go public........again

    That's right ladies and gentlemen, only a few weeks after Wendy's surpassed BK at second-in-command behind McDonald's, BK retaliates by now going public for a second time. Burger King is going public. Again. Just 18 months after being taken ...

    7 comments - 2 silver bananas - Jul 31 2012 - 9:06pm -

  84. merger vs LBO model

    Which of the following statements are TRUE regarding the DIFFERENCES in the pro-forma Balance Sheet adjustments in an lbo model vs. the adjustments in a merger model? a. Under Long-Term Liabilities, there are likely to be more debt tranches in an LBO mode ...

    6 comments - 0 silver bananas - Mar 6 2017 - 12:47pm -

  85. Financial Model please!

    I know this maybe asking for a lot, but can anyone send me a fully built out financial model?!? I remember doing one in college but I can't find that one and I'm wanting to polish my skills. You don't have any idea how much I would apprecia ...

    7 comments - 0 silver bananas - Aug 2 2011 - 2:48pm -

  86. Debt Paydown in an LBO Model

    Hi all, After an LBO occurs, how much of the free cash flow that the company generates will be used to pay down debt? Will the PE firm opt to use all of the free cash flow to pay down as much debt as it can? Or will it only use a certain portion of it and ...

    7 comments - 0 silver bananas - Mar 26 2011 - 8:25pm -

  87. Leverage relevance for LBO target

    Hello- looking for a good answer on why less debt is attractive for LBO targets. I've seen this in a few posts here and also seen it in deals. Isn't the existing debt just going to be refinanced? As far as I can tell purchase price will still ju ...

    7 comments - 0 silver bananas - Jan 17 2011 - 12:04am -

  88. Good Idea or Neeh?

    So since recruiters are dog shit, sorry for insulting people with dogs, I was thinking of taking this to the next step. In an effort to reach out on my own to PE funds, with contacts I have, as a lateral I was thinking of sending more than just a resume a ...

    7 comments - 0 silver bananas - Feb 12 2010 - 1:42pm -

  89. Elevator Pitch for Private Equity

    Pursuing private equity opportunities? Here's an interesting snapshot that shows how high the bar is to be a competitive candidate, and a strong & weak example of an elevator pitch for private equity Typical profile of a candidate for a Top 50 Pr ...

    7 comments - 0 silver bananas - Oct 27 2009 - 10:44am -

  90. Please help! Having problems with cash sweep

    Hi guys, I've been trying to practice my LBO modelling with Street of Walls' sample LBO case study practice and my cash sweep is not working properly. I don't have any formal IBD experience and have taught myself to model; I can build a bas ...

    5 comments - 0 silver bananas - May 9 2017 - 9:19am -

  91. Too much capital chasing too few LBO deals

    In a book I'm reading these days, it says too much capital chasing too few LBO deals is problematic. How can this be problematic? Too much capital chasing lot of deals could turn out bad. But, if there are too few deals at the market, the capitals ar ...

    7 comments - 0 silver bananas - Jul 4 2009 - 10:52am -

  92. Credit Rating for Debt in an LBO

    What is the typical credit rating that private equity firms seek to have their debt rated? Is there any typical range? LBO credit rating debt ...

    7 comments - 0 silver bananas - Nov 8 2008 - 11:41pm -

  93. LBO Financing and Investment Banks

    Just trying to figure out the relationship between collateralized loan obligations (CLOs) and LBO financing. When an investment bank syndicates a loan, who is providing the capital? Is it the bank itself, or does it simply accumulate capital from other so ...

    6 comments - 0 silver bananas - Apr 18 2014 - 3:33pm -

  94. Help!! LBO of a leasing company; include interest on capital leases in pre-financing fcf?

    Peeps- desperately looking for some quick guidance on doing an lbo model for a leasing company (they buy ships via capital leases then lease them out to travel companies). Do I include the interest they pay on the capital leases in the FCF before (or afte ...

    6 comments - 0 silver bananas - Mar 4 2012 - 11:05am -

  95. MOIC vs. IRR- Interview Question

    Let's say you have two investment opportunities. One has a higher MOIC, one has a higher IRR. Which do you prefer? Investment Banking Interview: MOIC and IRR The question above tests your understating of two similar principles in finance. These princ ...

    5 comments - 1 silver bananas - Feb 13 2018 - 2:11pm -

  96. KKR backed HCA 4.6 billion IPO, largest 2 years

    Seems like PE firms may be back in action in terms of exit investments. May 7 (Bloomberg)-- HCA Inc., the hospital chain bought four years ago in a $33 billion leveraged buyout led by KKR & Co. and Bain Capital LLC, filed to sell shares worth as much ...

    6 comments - 0 silver bananas - Jul 31 2012 - 9:06pm -

  97. LBO pitch

    Need some ideas for an PE interview pitch...what sector/companies would make good LBO targets right now? LBO ...

    5 comments - 0 silver bananas - Jan 11 2018 - 2:52pm -

  98. LBO Returns Analysis question (not for the faint of heart)

    Ok, so this has been driving me nuts and I can't figure out the answer, this is a fairly detailed question so if you don't have time to bang your head against the wall i wouldnt look. In order to back into an "implied purchase price" o ...

    6 comments - 0 silver bananas - Feb 8 2010 - 1:57pm -

  99. LBO Sensitivity Question (data tables)

    So I am somewhat new to LBO modeling as we don't really do it at my firm but I am trying to learn because I find it interesting and eventually want to end up in PE. I work with data tables to perform sensitivities every day, but in the context of a L ...

    6 comments - 0 silver bananas - Jan 17 2010 - 2:33pm -

  100. Will BUY your Corp Fin Master's Thesis

    Please PM with the subject of your thesis, number of page and price asked for it It has to deal with corporate finance (LBO, Valuation, Ratios, etc) M&A LBO Valuation master thesis ...

    6 comments - 1 silver bananas - Jan 10 2010 - 2:15pm -

  101. WTF is up with these models?

    Why is it that 4 out of every 5 LBO models have alternating skinny columns. Its so fucking annoying. Is there a reasonable explanation for this? It cant be functional. How do you have an IRR calculation when every other column is blank. On top of that, al ...

    6 comments - 0 silver bananas - Jul 31 2009 - 3:04pm -

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