Posts by: Guest 1
Re: Enterprise Value Formula
ah so technically cash in the EV formula is really excess cash. Assuming I can calculate with precision, excess cash should be the number I use correct?
ah so technically cash in the EV formula is really excess cash. Assuming I can calculate with precision, excess cash should be the number I use correct?
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?
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?
Re: Options Exerciseable versus Outstanding - Complex LBO
What exactly does "vested" mean?
What exactly does "vested" mean?
Re: IRR>WACC, chose this project?
I think that is company's WACC. I think the reasons you listed should be already considered into the cash flow. That is IRR reflects these factors. Do you think so?
I think that is company's WACC. I think the reasons you listed should be already considered into the cash flow. That is IRR reflects these factors. Do you think so?
RE: Quick & Dirty Basic LBO Model: Modeling Private Cos
Thank you very much for the quick response. Just one clarification when you say TEV i suppose you mean Transaction Eneterpise Value? I got my answer with regards to the LBO. How about when it comes to the acquisition of a private company and on the merger model. When we have to create the B/S ... Read More
Thank you very much for the quick response. Just one clarification when you say TEV i suppose you mean Transaction Eneterpise Value? I got my answer with regards to the LBO. How about when it comes to the acquisition of a private company and on the merger model. When we have to create the B/S ... Read More
Re: Core Model DCF - terminal cashflow
Agreed and the p growth method is simply not a good valuation methodology for the company in question. I do agree with you that in slow growth companies DDA and Capex should be close
Agreed and the p growth method is simply not a good valuation methodology for the company in question. I do agree with you that in slow growth companies DDA and Capex should be close
Re: Enterprise Value Formula
perfect. Thanks for clarifying.
perfect. Thanks for clarifying.
Complex LBO - tender costs
In the model we take a % of current debt to work out the tender costs but H refers to modelling out the debt and taking NPV of interest/redemption in order to do it absolulutely correctly. What do you mean by this? If you model out the debt and take NPV how do you then calculate the tender costs fro... Read More
In the model we take a % of current debt to work out the tender costs but H refers to modelling out the debt and taking NPV of interest/redemption in order to do it absolulutely correctly. What do you mean by this? If you model out the debt and take NPV how do you then calculate the tender costs fro... Read More
Re: IRR>WACC, chose this project?
Sorry I can not find finance 101 course. Could you help me find it? Thank you.
Sorry I can not find finance 101 course. Could you help me find it? Thank you.
In the Core Merger Modelling Topics module, the models you build concern public listed companies either as acquirors or as targets. What are the effects on a model when the target is a private (not listed company) or a Business Unit that a corporation wants to dispose. For example let's as... In the Core Merger Modelling Topics module, the models you build concern public listed companies either as acquirors or as targets. What are the effects on a model when the target is a private (not listed company) or a Business Unit that a corporation wants to dispose.
For example let's assume the target is a 100% subsidiary of a large corporation. The large corporation wants to dispose this subsidiary and it is the perfect LBO candidate. How are we going to treat this transaction? In any calculation concerning Equity are we going to use the number of shares with their nominal value? i.e the target has 100k shares with a nominal value of $5. Will the premium be calculated on the nominal value?
What will happen in the case where a large corporation wants to divest from a B.U which has no legal entity form. How do we treat such transaction from a model point of view, when we have no equity.
It woul be great if you could explain one LBO and one merger example.
Thank you in advance for your prompt response Read More