medium · Private Equity & LBOs
In a 'Locked Box' transaction, what is the significance of the 'Locked Box Date'?
- It marks the date the company's bank accounts are frozen by the lender group.
- It is the deadline by which the buyer must have financing fully secured.
- It is the date at which the economic risk and reward transfer to the buyer.
- It marks the date the GP must stop calling further capital from its LPs.
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