Re: Historical Cash Flow statement
Thanks.

So if i wanted to rearrange/reclassify the historical CF statement to better reflect what I would consider CFO for example, as some companies might not classify some line items correctly, you suggest just plugging in the numbers from the CF statement and aggregate accordingly?

Debt Extinguishment - Equity offered
In addition to the 2010 debt extinguishment, approximately $225.8 million aggregate principal amount of the 11% Senior Subordinated Notes held by certain affiliates of the Company’s controlling stockholder were transferred to the Company’s indirect stockholders and ultimately to XYZ Holdings, th... In addition to the 2010 debt extinguishment, approximately $225.8 million aggregate principal amount of the 11% Senior Subordinated Notes held by certain affiliates of the Company’s controlling stockholder were transferred
to the Company’s indirect stockholders and ultimately to XYZ Holdings, the Company’s indirect parent company. Such notes were then transferred to XYZ Holdings and then to XYZ Industries as a capital contribution and cancelled on February 12, 2010.

Here is a sample 10-K text. How do I handle this $225.8 MM in the core model IS, BS and CFS? It is non-cash as the shareholder owning the debt was simply issued stock in exchange for these bonds. So this should just be a increase in APIC with a corresponding decrease in debt to offset correct? There would be no entry on the CFS correct? Read More

Re: Goodwill and Minority Interest for less than 100%
So maybe I'm a bit confused here. As per I could understand, we don't have LBO deals buying less than 100%, is that right? Because I assume that when we have it (less than 100%), what actually happens is that the remaining portion that the primary PE sponsor didn't buy out is either bought out by ot... So maybe I'm a bit confused here. As per I could understand, we don't have LBO deals buying less than 100%, is that right? Because I assume that when we have it (less than 100%), what actually happens is that the remaining portion that the primary PE sponsor didn't buy out is either bought out by other PE fund(s) or is roll-over equity, right?

If it is right, then I would agree with you that LBO does not create minority interest, and does not create 'partial' goodwill as well, because at the end of the day the entire company (100%) is being bought out, but with various equity sources.

Now, if this is a merger, my question is still open: don't you guys think that calculating the post-transaction GW for a 80% acquisition with the tangible book value would creat a difference in the model? So, in this case, can I calculate the transaction GW ONLY and them sum it to any existing GW on target's BS when consolidating? Are you guys sure that we are oblied to/must blow out the target's existing GW? Which FASB pronouncement says that? Read More

Cannot FULLY use WSTMacros3.4.2.xla on Excel 2013
Any functionality that requires you to start with "Alt+S" doesn't work on Excel 2013.

Valuation Question
If we take the pepsi model you went over for example. once we have taken the PV of unlevered FCF and the terminal value (by taking a multiple to EBITDA), how should we think about the cash and debt in arriving at the equity value? If we had projected the balance sheet out to the terminal value date ... If we take the pepsi model you went over for example. once we have taken the PV of unlevered FCF and the terminal value (by taking a multiple to EBITDA), how should we think about the cash and debt in arriving at the equity value? If we had projected the balance sheet out to the terminal value date in the first place, then we should deduct the PV of the net debt from the PV of the CF's plus terminal value, and not the future values? or can we also deduct today's net debt, if somehow we did not project the balance sheet out to the terminal value date? was this how you went about it with the Pepsi example? Read More