Posts by: Guest 1
Merger Modeling Basics: 338(h)10 election
Hi there, In a 338(h)10 election deal structure, where we don't need to amortize the "GW" but we still have the tax credit, should we apply the tax credit to the difference between Purchase Price - Book Value ONLY, or the tax credit goes over Purchase Price - Book Value + Transaction fees? In oth... Read More
Hi there, In a 338(h)10 election deal structure, where we don't need to amortize the "GW" but we still have the tax credit, should we apply the tax credit to the difference between Purchase Price - Book Value ONLY, or the tax credit goes over Purchase Price - Book Value + Transaction fees? In oth... Read More
Re: Off Balance Sheet Capital Commitment
Got it.... I guess if capitalize in PP&E then we don't depreciate it. Since like you said the factory/building is not built yet.
Got it.... I guess if capitalize in PP&E then we don't depreciate it. Since like you said the factory/building is not built yet.
Identifiable Intangible Assets
My video for the M&A package has expired so I'm just going off of what I have in my notes and in the Pepsi/Molson M&A excel model. It seems the differentiating factor between Tax Deductible and Non-Tax Deductible Intangibles is whether the asset has a finite or infinite life. Separately, I w... Read More
My video for the M&A package has expired so I'm just going off of what I have in my notes and in the Pepsi/Molson M&A excel model. It seems the differentiating factor between Tax Deductible and Non-Tax Deductible Intangibles is whether the asset has a finite or infinite life. Separately, I w... Read More
Monthly Model Balance Sheet Drivers
In our LBO modeling class we calculated inventory and accounts receivable using days inventory outstanding and days sales outstanding. However, this model was produced on an annual basis. When developing a model on a monthly basis, would you still use this formula or would you setup separate inven... Read More
In our LBO modeling class we calculated inventory and accounts receivable using days inventory outstanding and days sales outstanding. However, this model was produced on an annual basis. When developing a model on a monthly basis, would you still use this formula or would you setup separate inven... Read More
New Conditional Formatting Question
I want to conditionally format a range of cells in a manner that if the value is >5% than the cell to the left, it is green, and if it is <5% then the cell to the left, it is red. Can you help me figure it out? Also, why is the WST Macro Ctrl+Shift+W a conditional format instead of just chang... Read More
I want to conditionally format a range of cells in a manner that if the value is >5% than the cell to the left, it is green, and if it is <5% then the cell to the left, it is red. Can you help me figure it out? Also, why is the WST Macro Ctrl+Shift+W a conditional format instead of just chang... Read More
Short Term Investment treatment
I hv short term investment of 100 amount so that represented a -100 in CFI. so if i get interset income from that, that will give me + 10 in CFI. but let's say if i want to draw down 25 from the CFI to to finance the company. so i reduce CFI by -25, but where does my 25 goes in the rest o... Read More
I hv short term investment of 100 amount so that represented a -100 in CFI. so if i get interset income from that, that will give me + 10 in CFI. but let's say if i want to draw down 25 from the CFI to to finance the company. so i reduce CFI by -25, but where does my 25 goes in the rest o... Read More
FCFF calculation & WACC
Hi Guys, I have a few questions that i would like your opinion on. 1. On the DCF Analysis we calculate NOPAT after we subtract from EBIT the Cash Taxes (i.e NOPAT=EBITx(1-Tax rate)). Now let's assume that the company has retained losses carried forwmard which will not turn positive for the 5... Read More
Hi Guys, I have a few questions that i would like your opinion on. 1. On the DCF Analysis we calculate NOPAT after we subtract from EBIT the Cash Taxes (i.e NOPAT=EBITx(1-Tax rate)). Now let's assume that the company has retained losses carried forwmard which will not turn positive for the 5... Read More
R&D Expense and Capital
Hi WST, I am analyzing an ODM TECHNOLOGY company and trying to build an integrated projection. From reviewing its financial reports, it has, say, $8m of R&D expenses on the income statement and $12m of investment cash outflow of Product Development; it also has an intangible asset account for P... Read More
Hi WST, I am analyzing an ODM TECHNOLOGY company and trying to build an integrated projection. From reviewing its financial reports, it has, say, $8m of R&D expenses on the income statement and $12m of investment cash outflow of Product Development; it also has an intangible asset account for P... Read More
How do you define Interest Coverage Ratio?
How do you define Interest Coverage Ratio?
Do you use EBIT or EBITDA or something else in the numerator?
Please explain briefly you reason for preferring one over the other.
How do you define Interest Coverage Ratio?
Do you use EBIT or EBITDA or something else in the numerator?
Please explain briefly you reason for preferring one over the other.
How do I create a simplified model from the full blown core model, removing the debt sweep page?