What makes a good PE investment Find i d more on CoachingAssembly.com hi bl I/- CRITERIA FOR GOOD LBO CANDIDATES
Checklist:
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Strong g market p position and sustainable competitive p advantages g High barriers to entry High switching costs Strong customer relationships
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Multiple avenues of growth Introduction of new products New customers Exploring adjacent industries Expanding into new geographies
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Stable, recurring cash flows For debt service and interests payment
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Low capital p expenditure p requirements q Provides more flexibility Capital-intensive businesses will typically generate lower valuations from private equity firms since there is less available capital
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Favourable industry trends
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Strong management team
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Multiple areas for improvement and to create value Selling non-core assets Operational restructuring
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