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Subject Expert
Assuming you’re doing an LBO for the same business, all else equal. The LBO model will run similar. It’s the output.
PC will focus on covenants and ensuring debt service with less focus unless there’s convertible features/warrants. Either way, the model is relatively simple. Complexities hit if there’s cash flow sweeps, more complex debt structures, and continuous issuance of warrants with each new tranche of debt, but even then that’s easy in 1-2 hours.
PE will focus less on debt covenants (still important because PE’s utilize leverage effectively to finance a deal) but focus is calculating the exit value, MOIC and IRR by incorporating synergy realization, margin expansion, inorganic and organic growth, etc.
Any good online resources to see a PC example or build one via tutorial?