Leveraged Buyouts
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JCP LBO Template
In the JCP LBO template self-study, Long Term debt on the balance sheet is linked from the debt sweep (I77), which includes preferred debt along with senior unsecured debt. Should preferred debt notional always be included in that manner or should it be included in shareholders equity? For the JCP...
In the JCP LBO template self-study, Long Term debt on the balance sheet is linked from the debt sweep (I77), which includes preferred debt along with senior unsecured debt. Should preferred debt notional always be included in that manner or should it be included in shareholders equity? For the JCP LBO template, preferred stock is shown as zero on the balance sheet (I59), but if there were preferred debt in this cap structure, wouldn't the model be counting it twice on the balance sheet? Once in LT debt and once in shareholders equity? Thanks
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by Michael D.
added 9 years ago
Adv LBO Model
How do you calculate Cumulative Debt Paydown as well as Cumulative % of initial Debt Paid in the Credit and Leverage Statistics in the model. thank you.
Minimum Cash Balance
Do we put the minimum cash balance as a use of fund as well (in addition to source of fund)? Please explain thank you.
Sources & Uses for less than 100% LBO
What is the proper way to set up sources and uses for an LBO where the sponsor is acquiring less than 100% of the target? I have typically included lines for roll-over equity in both the S&U in order to get the value of the total equity (rollover and purchased) from the sources to equal the equi...
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Minority Interest in LBO Model
When doing a (UK) PtP LBO Model, I have to include in uses of fund the following (what I am quite sure about):
Share Price (latest close)
% Premium
Offer Price per Share
All Shares Outstanding
Equity Offer Value
=+Debt Refinancing
=+Pensions
=+Transaction Costs
=+Tendering Costs
=+...
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LBO enhanced model question
The LBO enhanced model, once I put in 2007 as the last full year, uses
2007 as the year to add the balance sheet deal adjustments--even though
the deal will happen in, say, August 2008. It then gives the 2008P and
2009-2012E balance sheets. This seems counter-intuitive: Shouldn't the
deal adjust...
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IRR calcs page on LBO Enhanced Model
I have a question re the IRR page. In the 3 separate IRR calcs, we
distinguish between equity returns to sponsor, all-in sponsor returns
assuming he also holds the mezz/warrants piece, and a separate mezz
returns profile for an outside mezz/warrant holder. My questions revolve
around proper IRR ...
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Valuation - IRR
Do any of the self study courses include calculating the IRR of a transaction, I have taken the Core model and am now taking the enhancements course. The enhancements does do a NPV, but I am also working on a few private equity investments that require an IRR calculation. This is easily done, with E...
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Why does an LBO set the floor valuation?
Full Question:
Why does an LBO set the floor valuation?
Why does an LBO set the floor valuation?
How do you properly amortize debt items / paydown of debt?
Full Question:
How do you determine the amortization of debt items / paydown of debt for individual debt items?
How do you determine the amortization of debt items / paydown of debt for individual debt items?
What balances the LBO model in the Sources & Uses of Fun
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What balances the LBO model in the Sources & Uses of Funds?
What balances the LBO model in the Sources & Uses of Funds?
Insurance Company LBO Question
Full Question:
I am looking at the potential LBO of a small insurance company and have a question about how to model the transaction for purchase account purposes under GAAP and statutory accounting. Here are the assumptions:
I am looking at the potential LBO of a small insurance company and have a question about how to model the transaction for purchase account purposes under GAAP and statutory accounting. Here are the assumptions:
How to calculate / estimate transaction costs for an LBO?
Full Question:
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 lega...
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How to set up Sources & Uses for <100% LBO?
Full Question:
What is the proper way to set up sources and uses for an LBO where the sponsor is acquiring less than 100% of the target? I have typically included lines for roll-over equity in both the S&U in order to get the value of the total equity (rollover and purchased) from the sources t...
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GAAP or cash
I'm making an LBO model of a public company but relying on analyst report forecasts (including bloomberg consensus) which I assume are non-GAAP.
Should I adjust the analyst forecasts as much as I can for one times (amort of intangibles, restructuring) and use these for the P/L model with the GAAP ...
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How to determine reasonable debt covenants for an LBO deal?
Full Question:
How do you determine reasonable debt covenants for an LBO deal
How do you determine reasonable debt covenants for an LBO deal
What is the rationale for using PIKs in a LBO transaction?
Full Question:
What is the rationale for using PIK instruments in a LBO transaction?
What is the rationale for using PIK instruments in a LBO transaction?
Using different debt securities to finance an LBO
Full Question:
What is the rationale for using senior discount notes vs senior notes vs term loan vs credit facility vs cash vs PIK preferred stock
What is the rationale for using senior discount notes vs senior notes vs term loan vs credit facility vs cash vs PIK preferred stock
LBO Deal Structuring and Capital Lease Treatment Discussions
Full Question:
LBO Deal Structuring and Capital Lease Treatment Discussion Thread
LBO Deal Structuring and Capital Lease Treatment Discussion Thread
What is the purpose of management participation in the LBO?
What is the purpose of management participation in the LBO? Should the financial sponsors consider adding all company employees to participate in the LBO? If so, how would one structure the labor participation in the transaction?
Is there a premium paid to the existing shareholders?
Is there a premium paid to the existing shareholders during the LBO transaction? i.e., the event of taking the company private? If so, why?
