Module V· Sources & Uses (Strategic Acquirer)Intermediate

Question

How does Sources & Uses for a strategic acquirer differ from an LBO S&U?

Answer

A strategic acquirer S&U focuses on purchase price, refinancing target debt, fees, and funding mix across cash, new debt, new equity, or asset sales. An LBO S&U focuses on sponsor equity, debt tranches, rollover, minimum cash, and fees. Strategics also care about rating impact, EPS accretion/dilution, pro-forma leverage, and integration / synergy costs.

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