O'Reilly logo

Leveraged Buyouts: A Practical Introductory Guide to LBOs by David Pilger

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 13: Return Analysis

Having completed pro forma estimates is a significant accomplishment, but it still doesn’t tell us how much money we can expect to make on the deal. Investors care about returns. Simply put, how much money can we expect to make off this leveraged buyout, if we put our money at risk in the deal?

“IRR analysis is an effective way to measure the profitability or returns of investments.”

A good way to measure estimated returns is by using an internal rate of return analysis or IRR analysis. IRR analysis is an effective way to measure the profitability or returns of investments. An easy way to think of IRR is as if it were the yield on a loan. When you lend a friend $100 dollars and he pays you back that $100 plus ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required