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Question:
What is the "tax shield" in an LBO?
Answer:
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.
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.
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