I have a couple of upcoming cases for two middle-market firms. I believe I will have 24 hrs or something of the sort to complete each case. I'm practicing with an old case study I got through my network, and I need some guidance on the best way to approach the below 2 prompts.
1. ) Calculating implied EBITDA. For this prompt, I'd be advising a lender group and the debtor financing provides a summary of 13-week cash flow data
.Receipts
Payroll
AP disbursements
Rent
Debt Service
Severance
Cashflow
2.) Borrow Base Test
Given assumptions: (i) AR advance rate; (ii) Inventory advance rates: raw material and the finished goods; (iii) Ineligible AR consists of invoices aged over 90 days; (iv) Company has terms with vendors - no cash is due to vendors until receipt of raw materials.
The ask is to calculate the impact on cash, availability and net liquidity for the below 5 scenarios
(I) Eligible AR of $XX is collected
(ii)Raw material of $XX is received, eligible AR of $XX is collected
(iii) Inventory of $XX is sold for $XX
(iv) Raw material of $XX is received, raw material of $XX is converted to finished goods, finished
goods of $XX is sold for $XX, eligible invoices of $XX are collected
(v) Ineligible AR of $XXXX is collected, raw material of $XX is procured, raw material of $XX is
converted to finished goods
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Numquam cupiditate esse blanditiis voluptas cumque. Veritatis dolor quasi ut eum expedita doloribus. Porro eligendi optio et.
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