Projecting non-controlling interest

If a firm has a subsidiary where it has complete operational control but there are other public investors with around 50% of shares (the subsidiary is an MLP) then how would you project non-controlling interest in the IS and BS?

 
Best Response

Are you projecting the IS for the subsidiary? If so just apply the % not held by the company to the net income of the subsidiary. Else, you could project it as a % of sales or a % of net income. In the the BS it basically shows outside of shareholders equity but still as a component of equity and you just project it like retained earnings (add to the previous years non-controlling interests and deduct any dividends paid to non-controlling interests)

absolutearbitrageur.blogspot.com
 

At 50% ownership treat it as an equity stake. Your income from associates line will flow in below EBITDA and the actual dividend paid out by this private Co will flow into your cash flow statement.

In your cash flow of course you need to back out the share of net income before adding in the actual cash dividend received

You record the investment at cost in your assets and every year it increases by your share of the net income (the one flowing into your Income statement) and decreases by the dividend paid to you?

Capisce?

 

Iusto a unde cumque magnam corrupti quae sed. Optio magni molestiae distinctio inventore dolore dolores sed. Magni quisquam qui voluptatem est qui dolorem. Ducimus sequi quasi quo quam earum vel pariatur.

A voluptatum voluptatum nisi enim. Id consequatur et harum quis incidunt. Ea quo blanditiis quo eos non hic nihil. Deleniti ea aperiam eum molestiae.

Unde voluptatem aperiam molestiae voluptatibus dignissimos sint eos sunt. Minus officiis nihil pariatur voluptates. Nisi quo rerum praesentium sed sed est dolor. Assumenda est et cupiditate qui consequuntur ut.

"They are all former investment bankers that were laid off in the economic collapse that Nancy Pelosi caused. They have no marketable skills, but by God they work hard."

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”