When Do You Use An Lbo Analysis As Part Of Your Valuation?

1.	When Do You Use An Lbo Analysis As Part Of Your Valuation?
Answer» Obviously you use this whenever you're looking at a Leveraged Buyout - but it is also USED to establish how much a private EQUITY FIRM could pay, which is USUALLY lower than what companies will pay. It is often used to set a "floor" on a possible Valuation for the COMPANY you're looking at. Obviously you use this whenever you're looking at a Leveraged Buyout - but it is also used to establish how much a private equity firm could pay, which is usually lower than what companies will pay. It is often used to set a "floor" on a possible Valuation for the company you're looking at.

Answer»

Obviously you use this whenever you're looking at a Leveraged Buyout - but it is also USED to establish how much a private EQUITY FIRM could pay, which is USUALLY lower than what companies will pay.

It is often used to set a "floor" on a possible Valuation for the COMPANY you're looking at.

Obviously you use this whenever you're looking at a Leveraged Buyout - but it is also used to establish how much a private equity firm could pay, which is usually lower than what companies will pay.

It is often used to set a "floor" on a possible Valuation for the company you're looking at.

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