Re: Excel Macros
Basically, what I am trying to do is to set up a macro that uses the ctrl + shift + alt + arrow keys as the short cuts. I am not sure how to set the hotkeys other than going to Tools>Macro>Macros and then clicking options to change the hot keys. Let me know if you can help.

Why is minority interest NOT included in M&A analysis?
Full Question:
I believe you characterized minority interest as a quasi-financing for earnings (which seems similar to interest-bearing debt). Therefore, it would seem that I should include minority interest in my enterprise value calculation.

PPE&depreciation schedule
Hello, I just finished the depreciation schedule session of advanced modeling, in which Capex starts to be depreciated in the next year. In fact Capex is not going into PPE immediately and construction for buildings often takes more than one year. During the construction period, capx is in the fo... Hello,

I just finished the depreciation schedule session of advanced modeling, in which Capex starts to be depreciated in the next year.

In fact Capex is not going into PPE immediately and construction for buildings often takes more than one year. During the construction period, capx is in the form of construction in progress (CIP) and depreciation only starts after CIP converts to PPE. A more dynamic model should consider CIP above as well. Read More

Corporate Valuation: Nuances on these methodologies
Hi there, I have a couple of doubts in relation to this module: (1). Could you please explain in more detail why capital leases are excluded (I watched that part twice and didn't really get it)? If we had a leasing finance (a credit line w/ a commercial bank) would we include it in the EV calc... Hi there,

I have a couple of doubts in relation to this module:

(1). Could you please explain in more detail why capital leases are excluded (I watched that part twice and didn't really get it)? If we had a leasing finance (a credit line w/ a commercial bank) would we include it in the EV calculation or not?

(2). Once PE is generally looked on a forward basis, I assume there should be no difference in calculating forward PE using Equity Value / Net Income and Price / EPS, since the diluted shares outstanding for the forecasted period would be calculated w/ today's share counting and effect of options using the today's share price (and not using WACSO). Does that logic make sense? (obviously here assuming no share repurchases going forward, them current share count = forecated share count, meaning Eq. Val / Net Income would be equal to Price / EPS).

(3). When applying the multiples from Deal Comps on the statistics of the company we are analysing, once I get to Equity Value should I divide this Eq. val. by the diluted shares O/S calculated using options excercisable or outstanding (since I have used options outstanding in arriving to the deal comps multiples in the selected deals)? And what about that when doing an LBO analysis (where you actually simulate a transaction), options outstanding or exercisable in the LBO analysis calculations?

(4). In the reference range, as we apply different multiples we will get to a series of Equity Value and consequently different implies prices per share. And my question is: is it appropriate to adjust the number of diluted shares O/S for each different multiple and implied new share price obtained in the reference range? If yes, how one would do that if we need our price per share to calculate our diluted shares O/S (and this same price per share is what we are trying to calculate)?

(5). Finally, should we include non-completed or only announced deals in our deal comps analysis? And why in deal comps we do not consider any forward multiples (only LTM)? Any specific reason here?

I appreciate your help in these questions.

Cheers Read More

Goodwill
Hi WST,
Quick Question: should option proceeds be deducted from purchase price to calculate the goodwill?
Many thanks.