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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. Capital Structure of an LBO. The acquisition transaction value was around US$ 43.8 References. Chambers, D. Alternative Investments: CAIA Level I.

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The Role of Financial Projections in Business Valuation

Equilest

They provide insights into the financial position, capital structure, and overall worth of the business. The Comparable Company Analysis (CCA) compares key financial ratios and multiples, such as price-to-earnings (P/E) ratio or enterprise value-to-sales (EV/S) ratio, of similar publicly traded companies.

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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.

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Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

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Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.