Watch out, clouds on the horizon.
Rising interest rates and the looming economic slowdown pose serious risks to unlisted companies acquired through leveraged debt (or LBOs).
As part of these financial arrangements, a holding company held by investment funds is created to buy the company with debt
.
Majority shareholder, he reimburses the loans with the profits of the company.
Debt ratios (leverage) are calculated in relation to the gross operating surplus (Ebitda) of the company.
They have increased significantly in recent years, with some banks granting financing representing 6 or 7 times this surplus.
But, in the current context, the financial balance of certain LBOs is weakened.
A number of companies are being penalized by soaring energy and raw material prices, and by supply difficulties.
The agri-food or distribution sectors…
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