Lbo modeling - Study guides, Class notes & Summaries

Sections Transaction assumptions, income statement, working capital schedule, balance sheet, statement of cash flows, debt schedule, interest expense schedule, credit metrics, returns calculations Transaction assumptions: Sections Sources & uses, transaction assumptions, financing assumptions, purchase accounting, debt financing, other assumptions, checks Transaction assumptions: Sources & uses Sources: cash on hand, revolver draw (which should be zero), term loan, senior notes, subordinated n...

What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWER>>>Extraordinary gains/losses what is false about depreciation and amortization - ANSWER>>>D&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was - ANSWER>>>a decrease of 15 mi...

LBO MODELING EXAM 2024/ACTUAL EXAM FROM WALL STREET PREP /LATEST UPDATE

LBO MODELING EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE GRADED A++ Define LBO & Goals A transaction where the buyer uses a lot of debt to acquire something: could be an asset, group of assets or business, or a house etc The main focus of an LBO model is to calculate the returns to equity investors Why use leverage? Helps amplify their potential returns by using debt. Less of your own money needs to go into the business. Sources & Uses Purchase price =...

LBO MODELING | FINANCEABLE EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ LBO Leveraged buy out - Is an acquisition of a business which a meaningful portion of the purchase price through debt - Executed by PE funds (holding period for 5 years) - Late stage businesses The LBO Process 1. Purchase price (usually EBITDA * Multiple = TEV) 2. Fund the deal 3. Use cash flow to pay down debt 4. Sale of the company (calculate TEV) 5. Pay the lender 6. MOIC (multiple ...

20 Week PE Interview Prep - LBO Modeling Exam

What is the biggest difference between an LBO and an M&A?Unlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate?-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk

LBO MODELLING EXAM/ LBO MODELING STUDY GUIDE ALL QUESTIONS AND CORRECT ANSWERS/ BEST GRADED A+

LBO Modeling Exam from Wall Street Prep 2024 / Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam 2024 GRADED A+ What is generally not considered to be a pre-tax nonrecurring (unusual or infrequent) item? - ANS-Extraordinary gains/losses what is false about depreciation and amortization - ANSD&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 millio...