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Private Equity

Lecture 5-6: Deal Structuring (Financing)

Comprehensive exam-prep quiz covering leveraged finance: sources and uses of funds, management incentives and equity structuring, the leverage effect on EV and equity, key factors determining leverage, LBO debt structures, loan underwriting options, and loan agreements.

Question 21 of 50

Sort each item under the correct key factor used to determine how much leverage a deal can support.

Drag each statement into the correct group.

Sort every statement: place all cards into a group, then check your answer.

Statements

5

Drag each statement into the correct group.

Track record, sector specialisation and relationship with lenders

High cash conversion: favourable working capital, modest maintenance capex

Equity cushion supported by comparable companies and transactions

Recurring, contractual and predictable revenue base, resilient to a downturn

Real estate and other material assets available as fixed security

Cash Flow

0

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Assets

0

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Enterprise Value

0

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Sponsor

0

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