Financial Structures: Cash, Cash, Cash... And Other Considerations (EP.18)
Permanent Podcast: Real Talk About Private Equity and Buying, Selling, and Operating Small Businesses
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The Implications of Using Debt and Understanding Capital Structures
This chapter discusses the advantages and risks of using debt in financial transactions, emphasizing the importance of considering future prospects and confidently assessing cash flow growth. It also explains the capital stack and the need for sellers to understand the implications of rolling their equity forward, while cautioning against entering complex capital structures.
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