Courses / Buyout / Multiple Contraction Upgrade AccountYour current access is limited. To continue watching this lesson, you'll need to purchase a subscription. Sign UpMultiple ContractionMultiple Contraction is a value-destructive phenomenon where the investors sell their investments at a lower multiple than what they paid.DiscussionRestricted AccessYou need to sign up for a Lumovest subscription in order to join discussions. Sign UpRestricted AccessYou need to sign up for a Lumovest subscription in order to to download lesson materials. Sign UpBuyout 1. What is a Buyout? (4:04) 2. Who Does Buyouts? (2:03) 3. How Equity Investors Make Money in a Buyout (2:36) 4. How a Buyout Financial Model Works (2:49) 5. Entity Structure (3:35) 6. HBB Case Study: Situation Overview (2:25) 7. Offer Premium (3:28) 8. Entry Multiple (1:54) 9. HBB Case Study: Setting Valuation (8:43) 10. Sources & Uses (2:14) 11. Equity Purchase Price (1:08) 12. Debt Repayment (3:12) 13. Debt Rollover (2:41) 14. Minimum Cash Balance (2:43) 15. Transaction Fees (2:01) 16. Existing Cash Balance (2:26) 17. Borrowing Debt (2:21) 18. Equity Check (2:17) 19. HBB Case Study: Sources & Uses (6:01) 20. Projecting LFCF Post-Investment (2:26) 21. HBB Case Study: Projecting LFCF (5:23) 22. HBB Case Study: Capital Structure (2:58) 23. Exit via Sale (3:06) 24. Exit Multiple (2:01) 25. Multiple Expansion (2:58) 26. Multiple Contraction (2:23) 27. Standard Returns Analysis (3:46) 28. HBB Case Study: Returns Profile (3:41) 29. Cost of Capital in Buyout (4:14) 30. Connecting Dots (2:32)
