This LBO exit strategy training will cover different ways a private equity firm can exit a leveraged buyout...
By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers"
... including an M&A deal – a sale to a normal company or to another private equity firm – as well as an initial public offering (IPO), and a recapitalization / perpetual dividend “non-exit.”

2:09 Exits in Real Life: M&A, IPO, and Dividends/Recaps
6:27 Standard M&A Exit in an LBO
7:21 IPO Exit in an LBO
12:44 Dividends / Recapitalization in an LBO
16:42 Recap and Summary

Exit Strategies in a Leveraged Buyout / LBO Model

There is typically VERY little thought given to the exit in a leveraged buyout (LBO) model – in 99% of models, people just assume a simple exit multiple based on EBITDA, implying that another company or another private equity firm buys the company.

But in real life, that doesn’t necessarily happen… sometimes, a portfolio company cannot be sold to another normal company or even to another private equity firm.

For example, it might be too big for another company to buy, or it might be in an unfavorable market where there’s little M&A activity.

Also, it tends to be harder to do M&A deals in emerging and frontier markets because potential buyers are also smaller and less willing to make big acquisitions.

As a result, you need to think about 2 alternative exit strategies: initial public offerings (IPOs) and recapitalizations (recaps), otherwise known as dividends / dividend recaps.

http://www.mergersandinquisitions.com/