How do you improve returns in an LBO?

We are continuing with how to answer main investment banking interview questions. This is really common question you will come across when interviewing for investment banking positions. To answer it, take a look at the content below, a sample for our IncuBanker online course…

How do you improve returns in an LBO?

Possibilities include (listed in order of greatest impact):

  • Lower purchase price
  • Higher exit price (through increased profitability and/or multiple expansion)
  • Increase leverage
  • Improve operations
  • Get cheaper financing

Strategy Video

Sample Answer 

 

Leave a Reply

Your email address will not be published. Required fields are marked *