Did somebody just use the acronym EBITDA in this forum? First time hearing this for sure.
But yea, that's a really good point regarding direct cost and indirect cost. The shoes may cost $100 to make, but indirect cost can be just as expensive.
AE is owned by PE right? Since the Company is levered, they must generate a return that is higher than what the banks are charging them for its debt. Not to mention, AE needs to hurdle, if not, what's the point of the buyout?