Advanced LBO Modeling

Credit/Leverage Statices
The video does not go over the credit leverage ratios section. Can you send me the answers? Know its self explanatory, really just interested in cumulative debt paydown

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by Ajay S.

added 8 years ago

Emerging Markets
During the LBO class discussion, it wasn't clear to me what the recommended treatment for adjustment for valuing an emerging market company. Are you saying to use not the US risk free rate and therefore adjust for the country specific rate, adjust the market risk premium, or adjust to the total numb... Read More

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by Guest 1.

added 10 years ago

Modeling/Projecting Floating Rates
I just completed the quick and dirty and advanced LBO courses and had a real world question: With bank debt being at a spread above LIBOR, how do u usually deal with projecting/modeling floating rate interest rates (for bank debt) in leveraged models? Do you assume a constant libor for say 5 yea... Read More

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by Guest 1.

added 10 years ago

adv lbo model questions
a bunch of questions in the advanced lbo model. Sources and uses: uses: this is likely a stock (not asset) purchase (as debt is refi'd/purchased/needs to be taken care of...)? what is the equity prem based from? if co has lot of cash, them would this affect eq prem? don't see cash or min int in u... a bunch of questions in the advanced lbo model. Sources and uses: uses: this is likely a stock (not asset) purchase (as debt is refi'd/purchased/needs to be taken care of...)? what is the equity prem based from? if co has lot of cash, them would this affect eq prem? don't see cash or min int in uses of funds .75% for debt fin fees, .75% for tender costs & accrued int, and .5% for trans costs? also trans costs based on pre-deal EV? sources: [target] cash is in uses because it assumes after [target] eq purchase, the acquirers (eg sponsors) own/control the assets [cash] and could use it during deal to pay off uses (eg equity)? valuation summary: the TEV multiples would be / are same as deal comp multiples in a deal comp analysis (and is [target] debt always included - or basically yes as most lbos are stock purchases AND also yes in more rare lbo asset purchases w assumption of debt)? P&L: D&A doesn't contain debt fin fee amort, as the latter is shown as separate item? P&L projections: what is purpose of showing PF (using y1 projections for y0) for year 0 (before transaction date), for net int ex & debt fin fees? PF tax rate - this based generally on historical last full year (assuming no major tax change event)? PPA: In LBOs (also the LBO model), we should ignore FMV & intangibles allocation b/c -GW less important as it is not amort -not public co, after LBO --not have to abide by GAAP for intang valuation & FMV step, as doesn't affect taxes and no need to screw up numbers (eg FASB 141/142 may mess up GAAP num v IRS) --co is revalued after LBO exit SCF: debt fin fee amort is added back to NI as it is non-cash ex (as debt fin fee was orig capitalized in BS)? Also what are offsetting accounts in the BS assets & liabilities (in the orig capitalized debt fin fee in BS)? credit & leverage stats: I calc Cumulative Debt Paydown as =SUM(Q30,Q36,Q56) I calc Cumulative % of Initial Debt Paid as =Q86/SUM($P$37,$P$42,$P$47,$P$52,$P$57) Just confirm these are correct, as answers are not provided? Read More

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by Guest 1.

added 10 years ago

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