Upgrade to remove ads
Private Equity Technical Questions
Street of Walls Guide
Terms in this set (15)
What is an LBO?
The acquisition of a public or private company using a significant amount of borrowed funds to fund the purchase price. During ownership of the acquired company, the PE firm will use the generated cash flows to service and pay down the outstanding debt.
Walk me through the mechanics of an LBO model
How do you assess credit risk?
What are the different types of PE firms?
What makes a good LBO investment candidate?
What are the different ways to value a company?
How would you spend a million dollars if it were given to you?
Company A has a potential IRR of 23% and Company B has a potential IRR of 30%. What two questions would you ask before you decide which to invest in?
What are the four main drivers of the change in IRR for an LBO scenario?
How do you model PIK notes?
Walk me through the calculation of free cash flow.
Why would a private equity firm use a convertible preferred note to finance an LBO?
How do you calculate amortization of intangible assets?
What are the uses for excess cash flow?
What makes a good management team?
YOU MIGHT ALSO LIKE...
Corporate Finance Ch.20
Stock Market & Business Structures
OTHER SETS BY THIS CREATOR
LBO Capital Structure Considerations
Street of Walls Guide Questions
Healthcare Services Terminology / Concepts