Typical leverage in Europe/Spain

September 12, 2023
by a searcher from IESE Business School in Barcelona, Spain
Hi all,
I'm thinking to start a Self funded search fund, and I was wondering what is the typical leverage we can assume in Europe, particularly in Spain. Can anybody share any experience/rule of thumb?
Thanks,
Xavi
from IMD in Lausanne, Switzerland
The investment bank I'm working with told me they use an ultra-conservative model (projecting historic, industry or no growth and apply the same EBITDA %) and with those projections they calculate how much debt they would be willing to provide.
from Colby College in Waterville, ME, USA