Distressed PE models/interviews
Hi guys
Tried posting this earlier but I think I f'd it up.
Wondering if anyone has any experience in the realm of distressed PE / distressed PE interviews. To prep I'm working up case studies on a few firms with full situation overview, cap structure, valuation, and 3-statement/LBO and now I'd like to get the next layer of complexity.
I know this varies a lot deal by deal but I'm wondering what some of the more common layers are, i.e. what are some of the more common buyout deal variations. I'm coming from a restructuring/bkruptcy background so I'm not as familiar with what goes on in PE firms.
I'm imagining in my head a scenario where the guy says "Ok, now imagine you throw a 26 pound cat into the company's SAP system and the whole damn thing melts down - walk me through the impact on each of the 3 statements."
Or some shit like that. Not really sure what to expect.
PS: Answer: All numbers go to #REF!





just pm you
just pm you
distressedd: just pm
just pm you
Would you mind sharing with the class?
Also very interested. Really
Also very interested. Really would like to see an example of the balance sheet adjustments when a company is bought below net asset value (aka no goodwill created). Does anyone have an example model with that type of purchase structure?
have not come across a model,
have not come across a model, but theoretically just like you mark assets up, you'd mark them down (closing/opening balance sheet), preferably long-term assets. remaining neg goodwill is recognized as extraordinary gain in year. I believe under international standards you'd have neg goodwill in your financials
Thanks guys - distressedd I
Thanks guys - distressedd I just msg'd you back with contact info
The way it was explained to me is that a restructuring w/ impairment is just the reverse of an LBO - you delever instead of lever. As for the specific treatments of goodwill etc., that's where things get a bit fuzzy. My inclination would be to mark down the PP&E/land to fair market value (i.e. what's the implied value of said assets after taking into account the new enterprise value/debt/equity etc.). But I'm just guessing here.
if you like it then you shoulda put a banana on it
Interested in learning more
Interested in learning more
interested as well
interested as well
We're working on it - pm me
We're working on it - pm me your email addresses
if you like it then you shoulda put a banana on it
Was this ever followed
Was this ever followed through? Would still be keen to know more.
This book has all you need -
This book has all you need - "Valuation for Mergers, Buyouts and Restructurings" Good reference to have.