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Learn/Private equity foundations

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Learn Private equity foundations

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B Basic

How a PE fund works8m
What makes a good LBO candidatePro8m
Value creation plans and exitsPro9m

A Advanced

The paper LBO, step by stepPro12m
Solving the paper LBO backwardsPro9m
How PE interviews test judgmentPro10m

FlashcardsPro0/24
Basic quizPro80% passes
Advanced quizPro80% passes
Terms

Private equity foundations

0
of 6 lessons: 0
of 24 cards

Flashcards Start the first lesson

How a PE fund makes money, what it looks for in a company, and the paper LBO you will be asked to do with a pen and ten minutes.

BBasic3 lessons

1How a PE fund worksA PE firm raises a fund from outside investors, buys companies with it over a few years, sells them over a few more, and takes a fee plus a share of the profits.8 min
2What makes a good LBO candidateProThe best buyout targets turn earnings into cash reliably, need little reinvestment, and have something the new owner can improve. A great company at a silly price is still a bad deal.8 min
3Value creation plans and exitsProBefore a sponsor buys, it writes down how it will make the company worth more and who will buy it at the end. Both halves get tested in interviews.9 min
Basic quizPro10 questions, 80% passes

AAdvanced3 lessons

4The paper LBO, step by stepProA paper LBO is a full buyout done with pen and paper in about ten minutes. The numbers are round on purpose; the test is whether you keep the steps straight under a clock.12 min
5Solving the paper LBO backwardsProThe real question in a deal is not what the return is at a given price, but what price still earns the target return. Same model, run in reverse.9 min
6How PE interviews test judgmentProPast the mechanics, PE interviews ask whether you would invest. They want a structured view, a downside case, and the courage to say no.10 min
Advanced quizPro10 questions, 80% passes