The tax shield in an LBO refers to the interest that the PE firm pays on its debt, which is tax-deductible. This means that they are able to save money by lowering their taxes.
Want access to more answers like this?
With an EBITDOG membership, you’ll get answers to hundreds of interview questions sourced from the top investment banks across Wall Street.
With an EBITDOG membership, you’ll get answers to hundreds of interview questions sourced from the top investment banks across Wall Street.
Your Wall Street job is just a click away 💸
You have the GPA, the internships, and the resume. We have the answers to the questions they're going to ask. Join EBITDOG and change the trajectory of your career forever.