The Art of Leveraged Finance: Key Components to Consider in the Search Fund World

This search fund deck shows leveraged finance on a $10 million company sold later for $20 million. All-equity profit is $10 million. Half debt doubles the equity multiple before interest, and a sale at $5 million wipes the equity. A $20 million example uses $10 million senior debt, $8 million equity, and $2 million of seller debt.