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You can sensitize ALL the following in the LBO model. True or False. If False, mention the one or two you cannot sensitize below? the
You can sensitize ALL the following in the LBO model. True or False. If False, mention the one or two you cannot sensitize below?
- the exit multiple of the investment, e.g., can you exit at 6x, 7x or 8x LTM EBITDA
- the exit time horizon for the investment, e.g., three, five or seven years
- the interest rate assumptions on the various debts going forward
- the amount of debt you would like to put on the company
- changing the operating assumption projections based on what the PE firm can do to improve the company operationally, for example, assumptions on revenue growth, cost of goods sold, and SG&A expenses as a percentage of revenues
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