What Is An "ideal" Candidate For An Lbo?

1.	What Is An "ideal" Candidate For An Lbo?
Answer» "Ideal" candidates have stable and predictable cash flows, low-risk businesses, not much need for ongoing investments such as Capital Expenditures, as WELL as an opportunity for expense reductions to boost their margins. A strong management team also helps, as does a base of ASSETS to USE as COLLATERAL for debt.The most important PART is stable cash flow. "Ideal" candidates have stable and predictable cash flows, low-risk businesses, not much need for ongoing investments such as Capital Expenditures, as well as an opportunity for expense reductions to boost their margins. A strong management team also helps, as does a base of assets to use as collateral for debt.The most important part is stable cash flow.

Answer»

"Ideal" candidates have stable and predictable cash flows, low-risk businesses, not much need for ongoing investments such as Capital Expenditures, as WELL as an opportunity for expense reductions to boost their margins. A strong management team also helps, as does a base of ASSETS to USE as COLLATERAL for debt.The most important PART is stable cash flow.

"Ideal" candidates have stable and predictable cash flows, low-risk businesses, not much need for ongoing investments such as Capital Expenditures, as well as an opportunity for expense reductions to boost their margins. A strong management team also helps, as does a base of assets to use as collateral for debt.The most important part is stable cash flow.

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