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Steps for Leveraged Buyout Analysis

ibca Investment Banking Council of America 0000 1. Assumptions of Purchase Price Making assumptions on the purchase price , debt interest rate , etc. Steps for Leveraged Buyout Analysis 2. Creating Sources and Uses of Funds Uses reflect the amount of money required to effectuate the transaction . step 3. Financial Projections Projection of financial statements done , ie , income statement balance sheets , usually for five years . step 05 4. Balance Sheet Adjustments Adjust the new debt and equity balance sheet . step 06 5. Exit Make assumptions about the private equity firm's withdrawal from its investment . 6. Calculating the Internal Rate of Return ( IRR ) on the Initial Investment Allows to calculate the value of the private equity firm's equity stake , which we can then analyze its Internal Rate of Return ( IRR )

Steps for Leveraged Buyout Analysis

shared by investmentbanki... on Apr 25
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Leveraged Buyout Analysis (LBO) analysis helps determine the purchase price of the prospective company or industry to develop a view of the leverage and equity characteristics of the transaction. #lb...

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