Private Equity & Exit Opps
What is a cash sweep in an LBO model, and why does it matter for returns?
Model answer
A cash sweep applies the company's excess free cash flow — after cash interest, mandatory amortization, capex, taxes, and working capital, and above the minimum operating cash balance — to optionally…
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More from Private Equity & Exit Opps
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- How should you prepare for and handle the headhunter intro call?
- What should you tell headhunters about your fund preferences — and why does consistency matter so much?
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