tag:blogger.com,1999:blog-3210265864030540915.post1564359346372920273..comments2009-12-14T17:43:23.404-05:00Duane Street Capitalhttp://www.blogger.com/profile/09081057669895040876noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3210265864030540915.post-7786055203074996702009-12-14T17:43:23.404-05:002009-12-14T17:43:23.404-05:00

Thanks for your comment and for helping to clarify our example. As you can imagine, trying to make generalizations is always challenging. Our intention by posting this experience was to point-out an ethical dilemma inherent in competitive bidding. That being said, your comment is accurate; investment returns are greatly influenced by capital structure. To further clarify the example and to

Andrewhttp://www.blogger.com/profile/03017501149710956952noreply@blogger.comtag:blogger.com,1999:blog-3210265864030540915.post-60116563265959706852009-12-14T16:09:38.684-05:002009-12-14T16:09:38.684-05:00

I certainly hope that the statement above "Most private equity investors are promising to deliver their limited partners ~25% annualized returns (in other words, they are using 25% to discount a company's future cash flows)" is not what you guys are doing. One is "return on equity", where as the other is "return on assets". Since most LBOs are done with some

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