Posts by: WST Expert 1
RE: Capital leases revisited x2
Industry is important - they should not only be adding back minority interest but also subtracting out equity investments (opposite of minority interest). Rationale: match the numerator (valuation) with denominator (EBITDA). So that means, profitability on IS is increased by 100% of subsidiary, but ... Read More
Industry is important - they should not only be adding back minority interest but also subtracting out equity investments (opposite of minority interest). Rationale: match the numerator (valuation) with denominator (EBITDA). So that means, profitability on IS is increased by 100% of subsidiary, but ... Read More
Re: Cannot FULLY use WSTMacros3.4.2.xla on Excel 2013
Yes, for the new Excel on PC version (Excel 2007 and Excel 2010 and later), you will need to precede the "S" with an "X" to access the Add-ins ribbon.
Thus, ALT+X+S and then the rest.
Yes, for the new Excel on PC version (Excel 2007 and Excel 2010 and later), you will need to precede the "S" with an "X" to access the Add-ins ribbon.
Thus, ALT+X+S and then the rest.
RE: AFM Enhancements: Valuation Question
Correct, you would use your diluted ownership %age after the "certain and known" anticipated capital raising.
Correct, you would use your diluted ownership %age after the "certain and known" anticipated capital raising.
Re: Valuation Question
When calculating TEV and Equity Value for DCF, you use current Debt/Cash b/c you have already PV'ed the cash flows and Terminal Value to today. As such, all figures that you are working in are already in PV terms. Even if you have the projected BS, it doesn't matter at all, it would be incorrect to ... Read More
When calculating TEV and Equity Value for DCF, you use current Debt/Cash b/c you have already PV'ed the cash flows and Terminal Value to today. As such, all figures that you are working in are already in PV terms. Even if you have the projected BS, it doesn't matter at all, it would be incorrect to ... Read More
Re: Modeling/Projecting Floating Rates
Normally, we keep LIBOR constant for projection purposes. This is because accurately projecting LIBOR over next 5 years is very difficult. You can, however, feel free to be as fancy as you want in projecting LIBRO, but seriously, if you can correctly project rates in the future, go into rates tradin... Read More
Normally, we keep LIBOR constant for projection purposes. This is because accurately projecting LIBOR over next 5 years is very difficult. You can, however, feel free to be as fancy as you want in projecting LIBRO, but seriously, if you can correctly project rates in the future, go into rates tradin... Read More
Re: Goodwill and Minority Interest for less than 100%
We agree with your summary which neatly summarizes our summary.
As for in the case of a merger - you would have to use our super-advanced merger model!
Unfortunately, as we stated earlier, you cannot (should not) use a LBO model for a merger!
P.S. pls do email us the list of previous Q&A!
We agree with your summary which neatly summarizes our summary.
As for in the case of a merger - you would have to use our super-advanced merger model!
Unfortunately, as we stated earlier, you cannot (should not) use a LBO model for a merger!
P.S. pls do email us the list of previous Q&A!
Re: Cannot FULLY use WSTMacros3.4.2.xla on Excel 2013
Just to check - you are hitting ALT+X and then the letter S after the Add-ins ribbon appears. If so, when you hit ALT+X, does the "WST" sub-menu show up within the Add-ins menu? If WST doesn't show up, then the macros were not correctly installed. If WST does show up, are there any other ... Read More
Just to check - you are hitting ALT+X and then the letter S after the Add-ins ribbon appears. If so, when you hit ALT+X, does the "WST" sub-menu show up within the Add-ins menu? If WST doesn't show up, then the macros were not correctly installed. If WST does show up, are there any other ... Read More
Re: Debt Extinguishment - Equity offered
To incorporate the issuance of the $150MM, in our blank Tranche 2, in the mandatory repayment line, throw in a positive $150 (to reflect a borrowing, instead of a repayment which would be a negative outflow).
The rest of the transactions stay the same.
Let us know if we missed anything.
To incorporate the issuance of the $150MM, in our blank Tranche 2, in the mandatory repayment line, throw in a positive $150 (to reflect a borrowing, instead of a repayment which would be a negative outflow).
The rest of the transactions stay the same.
Let us know if we missed anything.
RE: How do I treat Deferred Maintenance Revenues in TEV?
This is definitelty akin to deferred revenue and unearned revenue (ie magazine subscriptions). Thus, not to be part of TEV and so the same answer - don't add or subtract. In the case of a merger, we would normally treat this as a closing adjustment due to working capital - that is, the buyer req... Read More
This is definitelty akin to deferred revenue and unearned revenue (ie magazine subscriptions). Thus, not to be part of TEV and so the same answer - don't add or subtract. In the case of a merger, we would normally treat this as a closing adjustment due to working capital - that is, the buyer req... Read More
Thank you for your inquiry. Can you clarify the corporate structure as well as the exact flow. With all the "Company" and "XYZ" reference, it's not straightforward to follow the ownership structure (to determine consolidation requirements) and ultimately the flow of funds. Howev... Thank you for your inquiry.
Can you clarify the corporate structure as well as the exact flow. With all the "Company" and "XYZ" reference, it's not straightforward to follow the ownership structure (to determine consolidation requirements) and ultimately the flow of funds.
However, if we took a guess from your actual question at the bottom, it seems as if the debt is gone in place of more stock. If so, here's how we would entre this transaction (and YES CFS impact, although nets out):
1) under our debt sweep, in your mandatory payment assumptions, set it equal to negative beginning balance. this effectively wipes out the bonds
2) in CFS, under stock issued, enter the same amount from #1 above; make sure to input this as a positive number.
NET IMPACT at this point: Cash Avaialble / Required Before Debt is now higher (since cash wasn't actually received) and gets negated out at the top of the Debt Sweep in the net calculation of Cash available (row 12 from class) due to the mandatory payment.
BS IMPACT: This will then automatically flow into APIC on the BS and debt goes down, abiding by double entry accounting.
Please do not forget to increase number of shares outstanding to reflect new capital structure. Read More