Need Help Understanding Complicated Sources and Uses w/ Equity Rollover being Manipulated
Recently received a case study with the info below. I thought I had a good handle of sources and uses, but I don't know what to make of this scenerio. I am specifically confused with what is going on with sponsor and management equity rollover and if they are trying to hide something with the way they are reporting and if there is an implication which I should be able to glean from the way which they are showing such. The case study is for a sponsor to sponsor deal.
Sources:
New Debt: $1,250
Sponsor and Management Equity (1): $545
Total Sources: $1,570
Uses:
Target Purchase Consideration: $1150
Fees: $127
Sponsor and Management Rolled Equity (2): $293
Total Sources: $1,570
FootNotes:
(1) Includes new and rolled equity
(2) Does not include target company's managements rolled equity
I don't get this.
Are they trying to give the impression that the new sponsor is putting in more equity than they are?
Why even include sponsor and management rolled equity in the uses - like why not just net the $293 out of the $545 in sources and then just not include the $293 in uses at all?
And what is the deal with them not including the management rolled equity in the uses but including them in the sources? How is this possible while allowing this to still balance?
Any help would be much appreciated.
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