Posts by: WST Expert 1
Re: Balancing my M&A Model
We would recommend you delete all your transaction adjustments and add them back one at a time to see what the specific issue is. Chances are, its an offsetting entry you forgot or a simple switching of signs. We would also direct you back to our videos that build out the adjustments.
We would recommend you delete all your transaction adjustments and add them back one at a time to see what the specific issue is. Chances are, its an offsetting entry you forgot or a simple switching of signs. We would also direct you back to our videos that build out the adjustments.
RE: What balances the LBO model in the Sources & Uses of Fun
Two methods are used to balance the LBO model. The first and preferred method is by using the amount of equity in the sources section of the model as a variable. This allows you to maximize the amount of debt used in the transaction, thus increasing the rate of return for the entity providing equity... Read More
Two methods are used to balance the LBO model. The first and preferred method is by using the amount of equity in the sources section of the model as a variable. This allows you to maximize the amount of debt used in the transaction, thus increasing the rate of return for the entity providing equity... Read More
Re: How to set grey background in Windows 8?
You'll have to head to the system settings (either through the Charms bar, or the keyboard shortcut WINDOWS + I). Click/tap Personalization, and select one of the High Contrast Themes (High Contrast White, for example). Save Changes, then return to this screen and click on the second button from t... Read More
You'll have to head to the system settings (either through the Charms bar, or the keyboard shortcut WINDOWS + I). Click/tap Personalization, and select one of the High Contrast Themes (High Contrast White, for example). Save Changes, then return to this screen and click on the second button from t... Read More
RE: How do you properly amortize debt items / paydown of debt?
Amortization of financing fees is determined by the number of years to maturity/paydown of the particular debt instrument. Amortization is calculated according to the matching principle of accounting, i.e. a 6 year term loan is amortized over a 6 year period while 7 year senior notes are amortized o... Read More
Amortization of financing fees is determined by the number of years to maturity/paydown of the particular debt instrument. Amortization is calculated according to the matching principle of accounting, i.e. a 6 year term loan is amortized over a 6 year period while 7 year senior notes are amortized o... Read More
RE: SHLD Inputs on complex tr comps
3) Net Sales is what is reported on the financials. Net Sales has been already reduced by Allowance for Bad Debt/Uncollectibles; as a result, normally, you wouldn't see that expense AT ALL anywhere! It's definitely NOT in the expense line (whether COGS or SG&A). Plus, Sears didn't have it in pr... Read More
3) Net Sales is what is reported on the financials. Net Sales has been already reduced by Allowance for Bad Debt/Uncollectibles; as a result, normally, you wouldn't see that expense AT ALL anywhere! It's definitely NOT in the expense line (whether COGS or SG&A). Plus, Sears didn't have it in pr... Read More
Re: Purchase Price Allocation
1) No, the DTL is wiped out. A DTL is created due to temporary differences in tax vs book numbers that eventually will reverse. Since such differences are removed upon FMV step-up, because now, the diferences are removed and reconciled, the old DTL is also removed (RE being the offsetting entry). 2... Read More
1) No, the DTL is wiped out. A DTL is created due to temporary differences in tax vs book numbers that eventually will reverse. Since such differences are removed upon FMV step-up, because now, the diferences are removed and reconciled, the old DTL is also removed (RE being the offsetting entry). 2... Read More
Re: WST Macro Problem
No, the WST macros are yours to use forever. Look for updates on our website:
www.wallst-training.com and click on FREE RESOURCES
we constantly update our macros and make new versions available for free.
No, the WST macros are yours to use forever. Look for updates on our website:
www.wallst-training.com and click on FREE RESOURCES
we constantly update our macros and make new versions available for free.
RE: Why does an LBO set the floor valuation?
LBOs set the floor valuation because in theory, anybody could buy another firm (in an M&A transaction) and make it highly levered but in such a deal, there would be 'synergies' and as such, if you do anything 'value added' on top of an LBO, one should extract additional value above and beyond a ... Read More
LBOs set the floor valuation because in theory, anybody could buy another firm (in an M&A transaction) and make it highly levered but in such a deal, there would be 'synergies' and as such, if you do anything 'value added' on top of an LBO, one should extract additional value above and beyond a ... Read More
RE: Complex Trading Comps Analysis: COST Inputs
3) Compare Face Value vs Mkt Value, correct. However, we believe we did explain in the video that if Face Value is very close to Mkt Value but still greater, we might decide to convert. The Face is $571, the Mkt Value if converted of stock, is $513, off by OVER 10%. We don't want to establish a thre... Read More
3) Compare Face Value vs Mkt Value, correct. However, we believe we did explain in the video that if Face Value is very close to Mkt Value but still greater, we might decide to convert. The Face is $571, the Mkt Value if converted of stock, is $513, off by OVER 10%. We don't want to establish a thre... Read More
Not a stupid question, just an easy one. for IPO, PIPE or other capital raising, you would simply set up some entries: Cash UP Retained Earnings DOWN (for transaction fees) Equity UP You can set up a separate Trx Adj column or for simplicity on "simple" deals, treat as a regular injectio... Not a stupid question, just an easy one.
for IPO, PIPE or other capital raising, you would simply set up some entries:
Cash UP
Retained Earnings DOWN (for transaction fees)
Equity UP
You can set up a separate Trx Adj column or for simplicity on "simple" deals, treat as a regular injection of equity on the Cash Flow Statement (Issuance of Stock or whatever security).
The correct accounting treatment should include allocation to PAR and APIC, but it's ok to just do APIC since we only care about the combination of the two anyway. Read More