TERMinology

Our glossary of private capital terms

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Loan-to-Value (LTV)

An assessment of the level of debt being raised for a transaction, particularly in Leveraged Buyouts (LBOs).
LTV is the ratio (expressed in %) between (A) and (B), where:
(A) is the Debt raised to finance the transaction; and
(B) is the Enterprise Value (EV) of the transaction

See also: Equity Cushion