Posts by: Guest X
Comps when valuing a company for M&A
Hi, thanks again for answering all of our questions! When spreading comps to perform a comps analysis (not precedents) for the purpose of valuing a company for a take-private, should you still use options exercisable instead of outstanding (even though you would expect all of the options outstanding... Read More
Hi, thanks again for answering all of our questions! When spreading comps to perform a comps analysis (not precedents) for the purpose of valuing a company for a take-private, should you still use options exercisable instead of outstanding (even though you would expect all of the options outstanding... Read More
Re: Seasonal Working Capital
Let's say that the deal is closing at peak inventory (beginning of quarter 4, before the holiday season); if this were the case, should the LTM average net working capital be used or should a higher target be used given the expected seasonal increase in working capital?
Let's say that the deal is closing at peak inventory (beginning of quarter 4, before the holiday season); if this were the case, should the LTM average net working capital be used or should a higher target be used given the expected seasonal increase in working capital?
Hedging Instruments and TEV
Hi, is there ever a case when you would add/subtract the fair value of hedging instruments when getting to enterprise value from equity value?
Hi, is there ever a case when you would add/subtract the fair value of hedging instruments when getting to enterprise value from equity value?
Seasonal Working Capital
How should a working capital target be chosen for a business that has seasonal net working capital (for example, every year a company must build up inventory and its suppliers do not take credit, or bonuses for employees are paid at the end of each fiscal year). From what I have seen, many practitio... Read More
How should a working capital target be chosen for a business that has seasonal net working capital (for example, every year a company must build up inventory and its suppliers do not take credit, or bonuses for employees are paid at the end of each fiscal year). From what I have seen, many practitio... Read More
Exit Transaction Fees & IRR/MOIC
When doing an LBO model, if you assume a certain amount of transaction fees the sponsor will have to pay at exit, should you account for these in the MOIC/IRR that you calculate in your LBO analysis?
Thanks for the help!
When doing an LBO model, if you assume a certain amount of transaction fees the sponsor will have to pay at exit, should you account for these in the MOIC/IRR that you calculate in your LBO analysis?
Thanks for the help!
Diluted Shares Outstanding - Market Cap
Hi, would you ever measure market cap using the current share price and the treasury method (but using options outstanding instead of options exercisable)?
Hi, would you ever measure market cap using the current share price and the treasury method (but using options outstanding instead of options exercisable)?
Re: Gain/Loss on Derivative for Oil & Gas Company
Should the fact that gains/losses are non-cash items have any impact on our decision?
Should the fact that gains/losses are non-cash items have any impact on our decision?
Gain/Loss on Derivative for Oil & Gas Company
For oil and gas companies, should we not adjust out gains/losses on derivatives that are used for hedging purposes given that such companies engage in such transactions consistently?
For oil and gas companies, should we not adjust out gains/losses on derivatives that are used for hedging purposes given that such companies engage in such transactions consistently?
Re: Minority interest included as debt
Finally, how should cash be treated when levering and unlevering beta?
Finally, how should cash be treated when levering and unlevering beta?
Hi, can you tell me which of these should be added to basic shares outstanding when performing comps (not precedents) analysis: RSAs, PSUs, PSAs, Restricted Stock, SARs exercisable/outstanding, Directors Shares? Thanks so much!