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Leveraged Buyouts

Andrew Stolz

The concept of an LBO transaction is simple – private equity buys a company, fixes it up, repays its debt and then sells the company for a higher price to earn the profit. Senior Bank Debt / EBITDA 3.0x. Senior term bank debt. Capital Structure of an LBO.

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M&A Terms Every Business Owner Should Know

Class VI Partner

It is typically the highest risk/highest potential return portion of a company’s capital structure. Multiple of Earnings Multiple of Earnings, similar to Multiple of EBITDA, refers to the multiple of a company’s earnings to establish the entity valuation of the company.