Why is free cash flow important to leveraged buyouts?
Free cash flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. FCF is important to leveraged buyouts because it helps an analyst or banker determine whether there are sufficient excess funds to pay back the loan associated with the leveraged buyout.
Related Questions
- What is the correct definition of Free Cash Flow and is it useful to compare a companys performance from one year to the next, on the basis of Free Cash Flow and the way it changes?
- What is free cash flow? Why is it important for leveraged buyouts?
- Why is free cash flow important to leveraged buyouts?
