LBO/MBO
The main feature of LBO/MBO transactions from capital management perspective is substitution of equity with debt. Assuming that the cost of equity is normally higher than the cost of debt, LBO/MBO may result in substantial savings. A company normally acts as a borrower, if its capital is the subject matter of the LBO/MBO transaction.
Our services with respect to such transactions may include:
- origination of debt
- transaction support services
- financial consulting (in the part of calculation of debt to equity ratio and preparation of financial model)