The 3 most common ways to increase IRR are: growing EBITDA, paying off debt, and increasing the exit multiple. Growing EBITDA is the most common way to increase IRR. Most PE firms plan to grow EBITDA either by increasing revenues, cutting costs, or some combination of the two. Even if they sell the ...

A stock deal is when an acquirer purchases all shares (ie equity ownership) of a firm to purchase the entire company. The acquiror assumes both the assets and liabilities of the company. This is by far the most common kind of deal. In a stock deal, proceeds to the seller are taxed at the capital [&h...

You want to tell a story about how you became interested in finance, investing, and improving businesses. It’s best to provide some context initially about yourself so the interviewer understands what’s unique about you: where you grew up, where you went to school, and how the first “spark” ...

The most important characteristic of a good LBO candidate is stable cash flows since the PE owner will have to service the debt and stay within covenants in order for the investment to be successful. This means recurring revenue is very valuable, meaning that the revenue is “sticky” and it’s h...