What is the purpose of the 'Sources & Uses' section of an LBO model?
- It shows where deal funding comes from (sources) and what it pays for (uses), and the two must balance
- It sets out the schedule of dividends the company will pay the sponsor each year
- It forecasts the company's revenue and operating margins across each year of the projected holding period
- It catalogs the target company's key customers and each one's share of total sales
- It derives the exit multiple by benchmarking the deal against recent comparable deals in the same sector
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