Complex LBO Modeling & Enhancements

Last 10 posts

Following up to my (Peter) question RE: Complex LBO Modeling Enhancements - Mezzanine / Warrants Holder Investor Returns
A follow-up to my previous question, it just occurred to me : Did you mean ==> if the warrants conversion right is exercised, then the annual Cash Flow prior to the Exit Year will be = Common Dividends Received * E102 (Equity due to Warrants) + Mezzanine Notes - Cash Interest; and ==> Exit Y... Read More
Go to post added 7 years ago
Complex LBO Modeling Enhancements - Mezzanine / Warrant Holder Investment Return (with PIK and Warrants)
I am confused by your comment re: "if warrants are converted..." ==> Does it mean that If conversion right is exercised and warrants are converted to equity interest based upon the conversion ratio, my Total Equity Interest will then be = (1) % of equity due to warrants conversion to equity inte... Read More
Go to post added 7 years ago
What is Happening to "Existing Debt Tranche 1" in the "Debt Sweep" Worksheet, if "Refinance Option 3 - Refinance All-Existing Debt" is selected for Switch Cell "W3" in the LBO Summary?
I have just finished Complex LBO & Enhancements module and encountered this problem below. In the "LBO Summary" worksheet, if the "Refinance Option 3 – Refinance All-Existing Debt Refinanced” is selected for switch cell "W3", I then thought the “Existing Debt – Tranche 1” in the Debt Sw... Read More
Go to post added 7 years ago
LBO Model -LBO Summary 1 Option 7 Shares Outstanding Section Cell Number AA39 - Outstanding Amount at Strike price of $33.00
Per JCP FYE 1/29/2005 (FY 2004) 10-K, page 40, Footnote 15 Stock-Based Compensation, Stock Options sub-section, the table lists Stock Options Outstanding at strike price of $33.00 is "5,668". However, in the video presentation, your input was "5,688", resulting in FDSO under Deal to be "276.128... Read More
Go to post added 7 years ago
Illustrative Valuation Summary Section
For the "Enterprise Value as a Multiple of:" part of the Illustrative Valuation Summary Section, I understand why we are going off the pasted values for the 'current' column of multiples, but not for the 'transaction' column; wouldn't we want to divide the 'transaction' column's Equity Value and Ent... Read More
Go to post added 7 years ago
Complex LBO Modeling Course (Super Complex M&A Modeling Course)
I am seriously thinking of purchasing this package. I already have a good understanding on LBO's and advance knowledge of excel modeling. However, is it necessary for me to go through Package 6 before going through the "Super-Complex" course? Perhaps there is a model built in LBO Course (Package... Read More
Go to post added 8 years ago
EPS adjustments
The diluted EPS reported on p.57 of the pdf. is 0.95 vs the 0.97 we get from dividing NI by DSO. This is because the net income is adjusted for 2 items (1) preferred stock dividends (2) interest on convertible debt. I understand that item 1 is often paid after net income on the P&L. But why isn't it... Read More
Go to post added 9 years ago
10 Unanswered complex LBO questions
Hi, I have several quick qualitative questions: 1. In the debt sweep, I would imagine that if we get new debt, that new debt would become labeled as next year's existing debt. But we seem to be treating new debt and existing debt as different tranches. Why is this? What's the point of calling ... Read More
Go to post added 10 years ago
Options Exerciseable versus Outstanding - Complex LBO
Can you assist in definitions for me as a little confused, this also applies to the Quick & Dirty Dilution model: 1. Options Outstanding: options currently held by investors which will be exercised when stock price is in the money 2. Options Exerciseable: what is the difference between this an... Read More
Go to post added 10 years ago
Complex LBO - tender costs
In the model we take a % of current debt to work out the tender costs but H refers to modelling out the debt and taking NPV of interest/redemption in order to do it absolulutely correctly. What do you mean by this? If you model out the debt and take NPV how do you then calculate the tender costs fro... Read More
Go to post added 10 years ago