Francine Way

JULY 17, 2017

The major steps of LBO are: Building the Sources and Uses tables. Building a proforma balance sheet. Building a historical 3-statement model and a debt-interest schedule. Building the go-forward 3-statement model. Building the go-forward debt-interest schedule. Modeling the future exit.

Valuation 130

Valuation M&A Debt Book-building 130

Francine Way

JULY 13, 2017

Building the proforma income statement, proforma balance sheet, and Free Cash Flow to Firm (FCFF). Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC). Enterprise Value = Market Capitalization + Total Debt - Total Cash. Tangible Book Value = Book Value of Equity - Goodwill.

Valuation 130

Valuation M&A DCF Book-building 130

Francine Way

JULY 12, 2017

Build proforma income statement and balance sheet. Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. Derive Free Cash Flow to Firm (FCFF).

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Focus Investment Banking

MARCH 10, 2025

Optimize Working Capital (One Year Ahead) What It Is: Net Working Capital (NWC) is Current assets minus current liabilities (A/R + Inventory A/P + Accrued Expenses), excluding cash, which you keep (in a typical cash-free, debt-free transaction). Consistently book expenses to the appropriate line item.

Investment 52

Investment Book-building Sale Business 52

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in valuing a target company. Book Value of Assets: This approach is particularly useful for companies such as manufacturers and warehouses, where the business is heavily dependent on its assets. What is Valuation?

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

Sun Acquisitions

NOVEMBER 29, 2022

This can be done by paying off as many outstanding debts as possible, renegotiating terms for business loans, securing new clients, and getting your receivables paid up. Once you’ve done this, you can move on to the next step – organizing your books in preparation for business valuation. Are You Financially Ready to Sell?

Business 52

Business Valuation Broker Book-building 52

Focus Investment Banking

OCTOBER 30, 2023

Lower margins, in many cases, make these businesses unattractive to all but a small handful of financial investors like private equity groups, who look to invest, build a company up and then often sell to a larger private equity group. This tax-exempt status comes into play when structuring and analyzing the debt load the business can carry.

Debt 52

Debt Retail Business Private Equity 52