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Current pay for X-ray techs in inland empire
F / NYC / SVP Strategy Director / 215k
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How protected are weekends in PE?
when is on cycle 2023
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There are prevailing market interest rates that you can find by looking at companies that recently issued debt with similar financial and operational profiles
Mentor
It’s not that big of a driver really. It’ll knock a few percentages of IRR but won’t make or break a deal.
WACC
The big driver is the proceeds from the exit (which is an EBITDA multiple and debt service doesn’t really matter). LBOs I’ve worked on don’t even count annual FCF towards IRR / returns.
To answer your question, I think it’s pretty common to just assume that interest expense is fixed (and it often is).
Coach
Sounds like your experience is based on SoftBank style idiot tech investing. If one of our new associates told me he didn’t model an annual FCF I’d show them the door lol.
Coach
Forward LIBOR
When you model to assess a deal, you'll look at pricing comps (ie checking where have other similar companies priced at, with criteria such as the sector, the leverage, the rating, the business model). You don't "forecast" an interest rate. You're a taker of the margin you manage to price the credit at.
Kinda repeating what SA1 said