Leveraged Buyouts
Ask your LBO related questions here, both concepts and modeling-specific.
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Ask your LBO related questions here, both concepts and modeling-specific.
I am doing a LBO analysis of a small retailing company. The transaction EV is about $350 million and new equity is $100 (my number). What is the appropriate transaction cost for this analysis? You mentioned that the M&A fee was around 1-2% of TEV. But I am not sure about the legal, debt financing and tender costs for this small transaction. Since all the cash on the B/S is used to finance the deal, what cash balance should I use in the pro-forma analysis? Does it matter if I don't have any cash balance at all? In your JC Penney example, you had 750 for cash balance in the pro-forma analysis. I don't know how you got this number. Thank you for your help. Read More