Private Company Valuations
Higher interest rates are significantly impacting valuations of private companies, limiting the amount of debt that can be borrowed against earnings. While stable businesses once leveraged up to six times their EBITDA, that figure has now dropped to around five, constraining potential returns. This shift, coupled with increased debt servicing costs, creates challenges for sellers aiming to achieve favorable valuations in today’s market.In this clip
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Masters in Business
Michael Fisch on Private Equity Funds
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