- The main condition to achieve a positive IRR in an LBO without multiple expansion or EBITDA growth, is if a significant amount of debt is used and then paid off
- Secured Debt has floating interest rates, but Unsecured Debt has fixed interest rates (to protect investors and guarantee their returns)
- Founder/Mgmt ownership % increases in an LBO when they roll over their shares because the debt used to purchase shares reduces the total # of shares outstanding