Stable cash flow —— companies acquired during leverage acquisitions must have sufficient stable cash flow to pay interest costs and Repay the debt principal over time. Therefore, mature companies with long-term customer contracts and/or relatively predictable cost structures usually acquire through leveraged acquisitions.
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The relatively low fixed cost —— fixed cost poses a huge risk to private equity companies, special data because even if income declines, the company must still pay these costs. The relatively small amount of existing debt —— in the lever acquisition of “ mathematics ” is effective because private equity companies add more debt to the company’s capital structure, and then the company
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Repayment of debts over time has led to a reduction in effective purchase prices; when a company’s debt balance is already high, the transaction BJB Directory is more difficult to succeed. Valuation —— Private equity companies prefer companies that are moderately underestimated rather than companies that are properly valued; they are reluctant to acquire companies with extremely high valuation times （ transactions relative to the industry ） because