Posts by: WST Expert 1
RE: How do I create a data table? - and limitations
One constraint to data tables, as you have discovered, is that the inputs to the data table and the data table itself must be on the same worksheet. The output cells of the data table can be from a different worksheet. Your work-around solution is to either put the data table on the same worksheet a... Read More
One constraint to data tables, as you have discovered, is that the inputs to the data table and the data table itself must be on the same worksheet. The output cells of the data table can be from a different worksheet. Your work-around solution is to either put the data table on the same worksheet a... Read More
RE: AFM Enhancements: Valuation of negative earnings
If a company has negative FCFF, you would treat it the same as if it were positive - if in fact, the company is projected to lose money (or negative cash flow) then that clearly reduces the value of that company. Don't forget, the value of any asset is equal to the present value of future cash flows... Read More
If a company has negative FCFF, you would treat it the same as if it were positive - if in fact, the company is projected to lose money (or negative cash flow) then that clearly reduces the value of that company. Don't forget, the value of any asset is equal to the present value of future cash flows... Read More
Re: Adjusted EBITDA - Core Model
There are two ways to approach this: 1) the way we teach in our Basic Financial Modeling is to make the adjustments directly in the historical inputs so that the figures are automatically displayed as normalized figures. in some sense, this can be said is the "investment banking" method be... Read More
There are two ways to approach this: 1) the way we teach in our Basic Financial Modeling is to make the adjustments directly in the historical inputs so that the figures are automatically displayed as normalized figures. in some sense, this can be said is the "investment banking" method be... Read More
Re: M&A Debt Sweep CF Recapture Feature
Yes, because not all "mandatory" payments are actually mandatory. it's really done for sensitivity testing.
"What if we don't pay this, how much cash do we have - what can we do with it, let's negotiate with lenders for amendments, etc"
Yes, because not all "mandatory" payments are actually mandatory. it's really done for sensitivity testing.
"What if we don't pay this, how much cash do we have - what can we do with it, let's negotiate with lenders for amendments, etc"
RE: AFM Enhancements: Diluted Shares Oustanding figure
You are correct that the best way to calculate Implied Price per Share in a DCF analysis is to use the implied price to calculate dilutive options, thus changing the shares outstanding figure. That has the unfortunate effect of creating a circular reference because the newly updated diluted shares o... Read More
You are correct that the best way to calculate Implied Price per Share in a DCF analysis is to use the implied price to calculate dilutive options, thus changing the shares outstanding figure. That has the unfortunate effect of creating a circular reference because the newly updated diluted shares o... Read More
Re: Credit Statistics
Unfortunately, S&P stopped publishing the report. The latest version we were able to locate is their 2008 report (uses 2005-2007 figures). You can however, attempt to obtain updated information by scouring random industry reports published by investment banks or internal guidelines. Bloomberg co... Read More
Unfortunately, S&P stopped publishing the report. The latest version we were able to locate is their 2008 report (uses 2005-2007 figures). You can however, attempt to obtain updated information by scouring random industry reports published by investment banks or internal guidelines. Bloomberg co... Read More
Re: Super-advanced merger modeling
Actually, those percentages were chosen at random. You have one full year until AFTER the close of the deal to solidify those numbers, which means basically it's a moving target. You would pick the numbers based on the industry you are in. For instance, a pharmeceutical company would probably result... Read More
Actually, those percentages were chosen at random. You have one full year until AFTER the close of the deal to solidify those numbers, which means basically it's a moving target. You would pick the numbers based on the industry you are in. For instance, a pharmeceutical company would probably result... Read More
Re: M&A Cash Purchase Question
The answer is yes and no.
This is covered extensively in our M&A Deal Structuring course online!
Please re-review the course.
Thanks.
The answer is yes and no.
This is covered extensively in our M&A Deal Structuring course online!
Please re-review the course.
Thanks.
Re: Questions on basic Accretion/Dilution model
We still call it GW amortization in our model because the calculation is GW, not the entire purchase price. In our M&A Deal Structuring course, we give the example of a $200 asset. A common mistake is to depreciation the $200 but since you are adding Target Net Income in the simple accretion dil... Read More
We still call it GW amortization in our model because the calculation is GW, not the entire purchase price. In our M&A Deal Structuring course, we give the example of a $200 asset. A common mistake is to depreciation the $200 but since you are adding Target Net Income in the simple accretion dil... Read More
The logic would be more relevant for an LBO actually. The idea is that if you DON'T want to make debt repayments on either discretionary or the mandatory payments, you can quickly toggle the switch to zero. Those were back in the "easy money" days when companies could get banks to retain m... The logic would be more relevant for an LBO actually.
The idea is that if you DON'T want to make debt repayments on either discretionary or the mandatory payments, you can quickly toggle the switch to zero.
Those were back in the "easy money" days when companies could get banks to retain more cash for equity dividends to sponsor.
Although, you do see "cov-light" deals coming back in this environment. Read More