The amount of debt that banks are willing to provide to support an LBO varies greatly and depends, among other things, on the quality of the asset to be acquired, including its cash flows, history, growth prospects, and hard assets; experience and equity supplied by the financial sponsor; and the overall economic environment.
the amounT Of deBT tHat bAnks are wiLlIng TO PRovide TO support an LBO vaRiEs GreAtly And depends, amONg other tHInGS, on thE quaLiTy Of ThE asset to Be AcquirEd, IncludInG ItS CAsH floWs, hiSTOry, groWth pRoSpEctS, anD HArd aSsets; experiencE aNd equity SuPplieD BY the FinanCIAl sponsOR; aNd The OVerall eConOmIC eNvironmEnt.