medium · Private Credit & Debt fund-structures-returns-economics

In a 'Locked Box' transaction mechanism, which of the following is typically categorized as 'Leakage' that would require a pound-for-pound reduction in the purchase price?

1. Capital expenditures specifically authorized in the budget
2. Transaction bonuses paid to employees
3. Interest payments on existing senior debt
4. Dividends paid to the seller after the effective date

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