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CFA Level 2
Alternative Investments

Components of Enterprise Value in LBOs

Very Easy Private Equity Valuation Leveraged Buyouts

In the context of leveraged buyouts (LBOs), investors often assess the value of the target company using various financial metrics. One of the commonly used metrics for valuing a company is the enterprise value (EV).

Which of the following components is NOT typically included in the calculation of enterprise value when assessing a target company in a leveraged buyout?

Hint

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