List sorted by levered free cash flow to enterprise value. 1. Genworth Financial Inc. (GNW): Life Insurance Industry. Market cap of $5.46B. Takeover/LBO idea sourced from iStockAnalyst.

While these hard assets certainly help the credit structure, intangibles like brand, goodwill, and human capital have become increasingly important considerations in an LBO. Free cash flow is king ...

Given the high level of free-cash flow, combined with the incredibly low valuation currently attributed to the company, (and the current low interest rate environment), an LBO of Incredimail could ...

The target of an LBO must, almost by definition, be profitable, growing, and produce a suitably large cash flow. In acquisitions jargon this is often abbreviated as EBITDA, meaning earnings before ...

What Is the Difference Between LBO and DCF Models? Leveraged buyout (LBO) and discounted cash flow (DCF) models are both used in valuing a company but are used for different purposes. LBO is ...

If the returns of the acquired company do not exceed the debt financing costs or the cash flow is not sufficient to handle the high interest rates exacted by the LBO, bankruptcy could result and ...

For an LBO to work, the target company should possess ... is a long history of stable -- and preferably growing -- cash flows. The logic here is that the target company's cash flow will be used ...

Beyond this, an ideal LBO candidate should possess several key characteristics: • Stable Cash Flows: The company should generate predictable cash flows to ensure debt repayment. • Minimal Cap ...

These flows are hybrid flows, mixing expected operating cash flows with promised debt payments under a planned debt schedule. Because of this, it is difficult to accurately estimate the appropriate ...