Posts by: WST Expert 1

Re: Shares Outstanding
Please review our online videos - particularly Corporate Valuation and DCF modules. IS number is a weighted average number of shares outstanding throughout the time period. the number in the front is the latest available basic shares outstanding. for DCF and current valuation, you use the lastest b... Read More
Go to post added 10 years ago
Re: What is the purpose of management participation in the LBO?
After an LBO, you still need management to run the company and properly align economic interests. Hence sometimes an LBO is called an MBO for Mgmt Buyout (think Dell right now). If pre-LBO the company hasn't had to include all company employees in profit sharing, then post-LBO, financial sponsors pr... Read More
Go to post added 10 years ago
RE: Modeling out pension expenses on the cash flow statement
Recall that pension expense is technically included in Compensation (usually part of SG&A). That does not necessarily mean they physically paid cash for that expense in that time period (matching principle of expenses, subset of accrual accounting). Therefore, the contribution to pension would b... Read More
Go to post added 10 years ago
RE: Quick & Dirty Basic LBO Model: Modeling Private Cos
Don't forget, the Shares Outstanding on the BS is a book number, not market value. You would have to have an implied value of the Equity (presumably based on valuation methodologies described in our Corporate Valuation course - trading comps, deal comps, DCF, etc) and instead of hard-coding a stock ... Read More
Go to post added 10 years ago
RE: Inputting scheduled lease payments in the debt sweep
We would decrease capital lease on the balance sheet and put that in the cash flow statement just like working capital. In theory you have to account for imputed interest and depreciation.
Go to post added 10 years ago
Re: DCF Valuation
You can view our Advanced Financial Modeling - Enhancements course which contains our DCF module (or our Basic Financial Modeling module). The good news is that all the inputs to the DCF (from financials perspective) will all come from the Core Model, so it's just a matter of justifying the discount... Read More
Go to post added 10 years ago
Re: Shares Outstanding
Yes, you must match historicals, this is especially important when you normalize. this is covered extensively in our Complex Trading Comps course.
It would be highly beneficial for you to take that course.
Go to post added 10 years ago
RE: Accounting for Discontinued Ops on financial statements
As you know, typically, we would ignore the effect of Discontinued Operations in our projections. However, for recently announced Discontinued Operations such as WMT's Germany operations, you would need the segment breakdown of the assets and liabilities or they'd have to disclose it to you. In shor... Read More
Go to post added 10 years ago
RE: Quick & Dirty Basic LBO Model: Modeling Private Cos
Thank you for your inquiry. We answer your questions listed in this course's video (Quick & Dirty LBO Modeling) using simple figures and go into great detail on the full blown Sources & Uses for an LBO in our Complex LBO course, thus, to quickly answer your questions here: 1) Cash doesn'... Read More
Go to post added 10 years ago
Re: Is there a premium paid to the existing shareholders?
This topic is covered in our LBO courses:
http://www.wallst-training.com/self-stu ... l#package6

In short, yes, due to control premium if the target is public.
Go to post added 10 years ago