Posts by: Guest 1
RE: Quick & Dirty Basic LBO Model: text book
ok,,, but till you finish your book, can you please recommend me a book that would help me in understanding the LBO further (process, leverage, equity). i need some text in addition to your very useful models, notes and videos.
ok,,, but till you finish your book, can you please recommend me a book that would help me in understanding the LBO further (process, leverage, equity). i need some text in addition to your very useful models, notes and videos.
Calculating Equity and Debt base for WACC
There are two ways to calculate your equity and debt base that go into your WACC calculation. On one side you use book value (shareholders’ equity and total debt). This seems intuitive because it reflects the actual capital structure of the company. On the other side you use market values (mark... Read More
There are two ways to calculate your equity and debt base that go into your WACC calculation. On one side you use book value (shareholders’ equity and total debt). This seems intuitive because it reflects the actual capital structure of the company. On the other side you use market values (mark... Read More
Complex LBO Modeling: about change in account receivables
Hi, when you are calculating the change in account receivables, why you use the prior year's number to be subtracted by this year's number, why do it in reverse?
Thanks alot!
Hi, when you are calculating the change in account receivables, why you use the prior year's number to be subtracted by this year's number, why do it in reverse?
Thanks alot!
Re: Balancing the Core Model
Thanks for your detailed responses. They were quite helpful.
Thanks for your detailed responses. They were quite helpful.
Complex LBO: mandatory repayment for existing debt tranch 1
Hi
In the 10k filings, some companies don't give the next future years mandatory debt repayment, or the information is not clear, unlike the situation in our case, what you are going to do in those situation? Is it possible to model that out based on limited information ?
Hi
In the 10k filings, some companies don't give the next future years mandatory debt repayment, or the information is not clear, unlike the situation in our case, what you are going to do in those situation? Is it possible to model that out based on limited information ?
IRR decline
In the quick and dirty LBO, the IRRs begin to decline after a certain point…. The instructors explaination is “ you growth rates, your capital, your revenue must continue growing at the same rate as your IRR for the IRR to continue to grow”… Does this mean your Revenue must grow at 22.5% ann... Read More
In the quick and dirty LBO, the IRRs begin to decline after a certain point…. The instructors explaination is “ you growth rates, your capital, your revenue must continue growing at the same rate as your IRR for the IRR to continue to grow”… Does this mean your Revenue must grow at 22.5% ann... Read More
about the diluted shares outstanding
I am taking the Advanced Financial Modeling course. I have a question about the calculation of the diluted shares outstanding. In the beginning, Mr. Lin assumed that the diluted share outstanding in 2006 equals to that in 2005 in IS and then calculated EPS. Next, he used projected diluted EPS from ... Read More
I am taking the Advanced Financial Modeling course. I have a question about the calculation of the diluted shares outstanding. In the beginning, Mr. Lin assumed that the diluted share outstanding in 2006 equals to that in 2005 in IS and then calculated EPS. Next, he used projected diluted EPS from ... Read More
Valuation Question
We are helping our client reduce inventory. We are trying to make the case that capital tied to inventory has a cost - inventory cost + cost of capital. In my view, it is WACC. Our client thinks it is interest rate of revolving credit. Your thoughts?
We are helping our client reduce inventory. We are trying to make the case that capital tied to inventory has a cost - inventory cost + cost of capital. In my view, it is WACC. Our client thinks it is interest rate of revolving credit. Your thoughts?
Implied P/E of debt
Can you further explain implied P/E of debt for the Acquiror? I have read this response and have watched the video but need further explanation than “Don't forget, multiples (5x) are inverses of percentages (20%) and that's mathmatical in nature. $100 x 5x is the same as $100 / 20%.” I don’t ... Read More
Can you further explain implied P/E of debt for the Acquiror? I have read this response and have watched the video but need further explanation than “Don't forget, multiples (5x) are inverses of percentages (20%) and that's mathmatical in nature. $100 x 5x is the same as $100 / 20%.” I don’t ... Read More
In the distressed debt model Hamilton went over, can this model be used to evaluate High Yield bonds? Or High Yield Bonds are a complete separate animal where the distressed model cannot be applied? As I understand, In distressed you are more concerned about figuring out what security to invest an... In the distressed debt model Hamilton went over, can this model be used to evaluate High Yield bonds? Or High Yield Bonds are a complete separate animal where the distressed model cannot be applied? As I understand, In distressed you are more concerned about figuring out what security to invest and to identify the fulcrum security. Where as if you were presented w/ a HY bond, the analysis would be to determine whether this bond is attractive given its risk/reward relationship? In any case, if I were to analyze a HY bond, how would I go about modeling it out? Thank you! Read More