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Basic Quick & Dirty LBO Modeling
Questions/Discussions
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LBO - Quick & Dirty - for a early stage investment
I was hoping to clarify the use of the LBO model for a project. My inputs into the model would be as followed:
1. Transaction Enterprise value would be the the Max Debt (Ending Balance under the debt sweep) of the project, which in our case occurs in year 2
2. New Equity is a plug, and up to us to ...
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IRR
I am working on a quick and dirty LBO model for a large retail chain. I assumed 20% transaction premium, as well EBITDA and revenue multiples of 6.89x and 1.2x respectively. The actual multiples are 4.4 and 0.77.
I have two questions:
1) Are my transaction multiples too high comparatively with the...
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LBO "Super Complex Course"
Hi,
I purchased the quick and dirty LBO course, but am thinking about taking the complex course. Is it possible to upgrade, by paying $500 to get all the courses? I've already paid $250 for the quick and Dirty course.
Thank you
Greg
I purchased the quick and dirty LBO course, but am thinking about taking the complex course. Is it possible to upgrade, by paying $500 to get all the courses? I've already paid $250 for the quick and Dirty course.
Thank you
Greg
about LBO
Hi, I know that this is not the forum for this question, but as my access to the Q&D LBO model course expired I cannot access that forum anymore, so I'm posting here.
I was wondering if you can just shed me a light on how to adjust the S&U in an LBO model when not acquiring 100% of the ta...
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Quick & Dirty LBO
I have just done the online Quick & Dirty LBO and have some questions versus the Quick & Dirty we did with Hamiliton in class in September:
- Shareholders equity: should be the equity we pay less transaction costs per online version. We did not do this in class but rather took the equity pa...
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Quick & Dirty Basic LBO Model: Modeling Private Cos
In the Core Merger Modelling Topics module, the models you build concern public listed companies either as acquirors or as targets. What are the effects on a model when the target is a private (not listed company) or a Business Unit that a corporation wants to dispose.
For example let's as...
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Quick & Dirty Basic LBO: transaction enterprise value
Hi.
when you are calculating the transaction enterprise value,you use the sum of the equity acquisition and the existing net debt refinanced to arrive at the transaction enterprise value. But the $750 maintained on books has the significant effect on the amount of the existing net debt refinanced...
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Quick & Dirty Basic LBO Model: text book
hi guys,
do u know any good text books on leveraged buyouts? detailed process, valuation, etc...
appreciate it
ayman
do u know any good text books on leveraged buyouts? detailed process, valuation, etc...
appreciate it
ayman
IRR decline
In the quick and dirty LBO, the IRRs begin to decline after a certain point…. The instructors explaination is “ you growth rates, your capital, your revenue must continue growing at the same rate as your IRR for the IRR to continue to grow”… Does this mean your Revenue must grow at 22.5% ann...
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In relation to this class, I have a couple of doubts that you may be able to help me with:
(1). If we had dividends during the investment period, would we include them when calculating the Multiple of Capital (in that case being [Dividends + Exit Equity Value] / [Equity Injected] )?
(2). As we are treating this deal under the Purchase Accounting method (as per the videos and Hotspots), shouldn't the transaction fees be capitalized as Goodwill and therefore the Pro Forma opening Shareholders' Equity be the Equity Injected (direct from Sources) only? So, why are you deducting the transaction fees from the Equity Injected when calculating the PF Shareholders' Equity?
(3). In the LBO Overview lecture you say that it is better to have the Equity contribution as the balancing item in the Sources & Uses of funds (also, as a way of maximizing the amount of debt used). So, why are you fixing the equity contribution here in the model? Because by doing this we are assuming a fairly significant amount of debt (implied Debt / EBITDA of 5.9x) and we have no control over our capital structure, right?
(4). If I were to use this model for Valuation purposes (to determine the floor valuation for a given company), how would I do to find the maximum Equity Value I could afford to pay given a required IRR of let's say 25%?
(5). Just one comment here: Your template model does not include the Data table used by the instructor to explain the sensitivity analysis. I know it's pretty easy to do one, but just to let you know (if not already advised).
I appreciate your help.
thanks. Read More