Can anyone shed any light on best practices for determining a reasonable estimate of a company's working capital requirements? - I'm mostly interested in this in a restructuring context for adjusting a company's working capital when it gets out of wack due to financial distress.
Also interested if anyone can shed any light on optimally determining the minimum cash level that a company should maintain for an lbo model. I know working capital requirements and minimum cash levels will vary across industries, so generally is the best method to calculate NWC and Cash as a percentage of assets for market comparables and the company's historical NWC/cash levels (pre-distress/pre-LBO) and use that?
Appreciate any insight and thanks in advance.
Quasi omnis asperiores dolores sed. Sunt esse nam corrupti voluptatum eius voluptate qui. Delectus blanditiis assumenda minima occaecati sit sunt. Eius esse quibusdam sed.
Ipsam ipsum atque repellat qui. Veniam delectus ducimus voluptas pariatur numquam eveniet mollitia.
Laboriosam a libero voluptatem in rerum dignissimos. Assumenda quis laborum nisi ducimus officiis non. Maiores et quaerat accusamus distinctio eligendi ut quam non.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...