URGENT - NCI in LBO Model

Quick question on LBO modeling.

I am running an LBO on a company with a 60% stake in a sizeable JV. I have headline sales, EBITDA, net income forecasts for the JV from brokers.


To run the LBO would I strip out the JV financials from my P&L and subtract the net income attributable to other shareholder in JV from my cash flows to properly calculate free cash flow and valuation metrics? In that case I don’t need to include NCI in EV to Equity bridge. Any other adjustments I need to make to P&L?


Additionally, Would the financing EBITDA for the LBO be based on the consolidated EBITDA (i.e. including 100% of JV financials) or EBITDA including only 60% of JV financials?


many thanks!!!

 

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