medium · Investment Banking ma-lbo
In the 'Sources and Uses' for an LBO, where does the 'Management Rollover' appear, and how does it affect the Sponsor's cash outlay?
- It is a Source; it decreases the Sponsor's cash equity contribution.
- It is a Use; it represents the transaction fees paid to the banks.
- It is a Source; it increases the total Enterprise Value of the deal.
- It is a Use; it increases the cash required from the Sponsor.
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