The right way to address transactional events that occur during a private equity investment’s holding period.
Module Category: M&A and Transaction Adjustments
Key Concept: Holding period inflows and outflows do not change any of the value creation equations, but they do change where each analysis begins and ends. Inflows like follow-on equity investments, subsequent debt investments, and add-on acquisitions change an investment’s effective starting point. Outflows like equity distributions, dividend recapitalizations, and divestments change an investment’s effective ending point.