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LBO - Coggle Diagram

- - - - Subject
        
        Interested
        
        To Acquire
        
        Control
      - Gives
        
        Risk Capital
    - - Lenders
        
        As banks
      - Management
  - - - Necessary Step
        
        Delisting
  - - - Acquiring
        
        Business Unit
    - - Creation of NewCo
      - Setting up the Operation
      - Target Company Identification
      - Target Company Acquisition
      - Merger between NewCo and Target Company
  - - - Attractivness
        
        Financial Investors
    - - Sinergies
- - - - E.g. BB rating or Lower
  - - - Seller of a Shareholding
        
        Grants to the Buyer
- - - - Use of Leverage
  - - - Premium Risk
        
        Growth
        
        Interest Rate
        
        Insolvency Cost
        
        Default Cost
- - - - Deal Success
    - - 3 Variables
        
        Increase
        
        EBTDA Target
        
        Multiple of Exit
        
        Decrease
        
        Debt Target
- - - - Acquisition
        
        Target Company
        
        Using
        
        Combination
        
        Debt
        
        Equity
        
        Collateral
        
        Target Company's Cash Flow
        
        Used
        
        2 more items...
        
        Through Financial Solutions
        
        High Leverage
        
        Debt Capability
- - - - Levered DCF
        
        CAPM
      - Unlevered DCF
        
        WACC