How can an LBO model be used to value a company, and why is it called a 'floor' valuation?

• It sets the company's value without regard to the purchase price at all, which is treated in the model as an output rather than as an input
• Solve for the max price a sponsor can pay to hit its return; it floors value because strategics with synergies pay more
• It always yields the highest valuation of any method, since more leverage mechanically lifts what any buyer is able to pay for the business
• It values the company purely at the proceeds from selling off its assets in an orderly wind-down of operations
• It is essentially the same calculation as a discounted cash flow analysis