Can't imagine it isn't worth the $20... $20 is essentially nothing, it's like two drinks out at a reasonably priced bar. If you don't do it, don't let $$ be the reason - cause that's just jewish
Can't imagine it isn't worth the $20... $20 is essentially nothing, it's like two drinks out at a reasonably priced bar. If you don't do it, don't let $$ be the reason - cause that's just jewish
True, $20 is nothing. My biggest thought is you don't get any feedback. I model for a living, but only get feedback from my boss. So unless I get 3rd party feedback (from knowledgeable individuals), it might be a waste of a few hours. Between full-time work, full-time MBA, and the gf... I don't have much spare time.
I would also see value if I could view the top modelers finished products.
I'll do what I can to help ya'll. But, the game's out there, and it's play or get played.
I filled in random answers just to finish level one and got invited to level two. I didn't even do level two and got invited to level three. Take that for what it's worth.
I filled in random answers just to finish level one and got invited to level two. I didn't even do level two and got invited to level three. Take that for what it's worth.
Lol, that is awesome. I never ended up signing up for it. Your post makes me glad I didn't.
I'll do what I can to help ya'll. But, the game's out there, and it's play or get played.
Wow, yeah same here. I wanted to sign up but apparently it really isn't worth the money.
I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing.
See my Blog & AMA
Late post, but fyi, the event's free w/ the promo code that was in the email flyer sent to all cap iq subscribers
Placed 11th in Round 1, but b/c of work wasn't able to take part in round 2.
Private Equity firm wants to acquire a business for US$330m + any Advisory Fees equivalent to 2% of the transaction value. Assume the following:
-Transaction date of 30 December 2011
-The acquired entity comes with $1m of cash at bank and has no other assets or liabilities.
-No interest is earned on cash at bank.
-Senior bank debt of 3.0x of 2011 EBITDA has been obtained from a local bank.
-The Seller has also agreed to provide an additional US$35m in the form of a vendor loan.
-The Private Equity firm will invest the balance in the form of a shareholder note. The shareholder note is treated as a debt instrument for tax and accounting purposes.
-The Senior Bank Debt incurs interest of 7% per annum and is payable in full on the last day of the year.
-Principle is repaid on the initial drawdown as follow: 5% in year one, 15% in year two and 20% in year three, 30% in year four, 30% in year five. Principle repayments are not affected by any cash swept but stop when the full principle amount has been repaid.
-The Vendor Loan pays an 8% (non-cash) which accrues annually. This vendor loan is subordinated to the bank debt. The vendor loan is treated as a debt instrument for tax and accounting purposes.
-The Private Equity Firm shareholder loan pays a 15% non-cash pay coupon which accrues annually. This loan is subordinated to the senior bank debt and to the vendor loan.
-The Company needs to maintain a minimum of US$1m operating cash at all times. Assume a full cash sweep for any amounts above US$1m.
-The Private Equity firm wants to maintain control of the company and at the time of the acquisition will have a 85% shareholding in the company, while the management will retain 15%.
-2011 Sales were US$100m, and assume this will grow by 7% in year 1, and 12% p.a. thereafter.
-EBITDA margins were 35% in 2011 and are expected to increase by 2 percentage points per year for the next 5 years.
-CAPEX over this period will be $15m per annum (equal to accounting and tax depreciation).
-Assume an accounts receivable of $2.93m at the end of year 1, $6.21m at the end of year 2 $9.89m, at the end of year 3 $14.01m at the end of year 4 and $18.62m at the end of year 5. (On acquisition there were no accounts receivable)
-Assume there are no accounts payable.
-Tax will be charged at 30%.No tax refunds are provided for tax losses and tax losses are not carried forward to offset against future income.
-The private equity firm expects to sell out at the end of year 5 with an 8x EBITDA exit multiple.
A few of the questions asked below:
1) What's the net profit in year 5?
A) 3.8
B) 7.8
C) 13.8
D) 22.4
2) What is the total amount of accrued coupons paid after 5 years on the vendor loan?
A) 14.1
B) 16.4
C) 20
D) 2
E) > 21
3) What is the recommended level of bank debt?
A) 3.3x
B) 3.0x
C) 3.5x
D) 4.0x
4) What are the PE firm's cash-on-cash returns at 7x, 8x, and 9x EBITDAexit multiples in year 5?
A) 2.1x, 2.4x, 2.7x
B) 2.4x, 2.7x, 3.1x
C) 2.1x, 2.7x, 3.4x
D) 2.7x, 3.1x, 3.5x
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Can't imagine it isn't worth the $20... $20 is essentially nothing, it's like two drinks out at a reasonably priced bar. If you don't do it, don't let $$ be the reason - cause that's just jewish
True, $20 is nothing. My biggest thought is you don't get any feedback. I model for a living, but only get feedback from my boss. So unless I get 3rd party feedback (from knowledgeable individuals), it might be a waste of a few hours. Between full-time work, full-time MBA, and the gf... I don't have much spare time.
I would also see value if I could view the top modelers finished products.
That's nerdy as hell.
this.
apparently free for CapIQ users.
I filled in random answers just to finish level one and got invited to level two. I didn't even do level two and got invited to level three. Take that for what it's worth.
Lol, that is awesome. I never ended up signing up for it. Your post makes me glad I didn't.
Wow, yeah same here. I wanted to sign up but apparently it really isn't worth the money.
Signed up for round 1 - missed it entirely. Got invited to round 2. This thing is fake as shit.
Late post, but fyi, the event's free w/ the promo code that was in the email flyer sent to all cap iq subscribers Placed 11th in Round 1, but b/c of work wasn't able to take part in round 2.
Anyone want to take a crack at the LBO case?
Private Equity firm wants to acquire a business for US$330m + any Advisory Fees equivalent to 2% of the transaction value. Assume the following:
-Transaction date of 30 December 2011 -The acquired entity comes with $1m of cash at bank and has no other assets or liabilities. -No interest is earned on cash at bank. -Senior bank debt of 3.0x of 2011 EBITDA has been obtained from a local bank. -The Seller has also agreed to provide an additional US$35m in the form of a vendor loan. -The Private Equity firm will invest the balance in the form of a shareholder note. The shareholder note is treated as a debt instrument for tax and accounting purposes. -The Senior Bank Debt incurs interest of 7% per annum and is payable in full on the last day of the year. -Principle is repaid on the initial drawdown as follow: 5% in year one, 15% in year two and 20% in year three, 30% in year four, 30% in year five. Principle repayments are not affected by any cash swept but stop when the full principle amount has been repaid. -The Vendor Loan pays an 8% (non-cash) which accrues annually. This vendor loan is subordinated to the bank debt. The vendor loan is treated as a debt instrument for tax and accounting purposes. -The Private Equity Firm shareholder loan pays a 15% non-cash pay coupon which accrues annually. This loan is subordinated to the senior bank debt and to the vendor loan. -The Company needs to maintain a minimum of US$1m operating cash at all times. Assume a full cash sweep for any amounts above US$1m. -The Private Equity firm wants to maintain control of the company and at the time of the acquisition will have a 85% shareholding in the company, while the management will retain 15%. -2011 Sales were US$100m, and assume this will grow by 7% in year 1, and 12% p.a. thereafter. -EBITDA margins were 35% in 2011 and are expected to increase by 2 percentage points per year for the next 5 years. -CAPEX over this period will be $15m per annum (equal to accounting and tax depreciation). -Assume an accounts receivable of $2.93m at the end of year 1, $6.21m at the end of year 2 $9.89m, at the end of year 3 $14.01m at the end of year 4 and $18.62m at the end of year 5. (On acquisition there were no accounts receivable) -Assume there are no accounts payable. -Tax will be charged at 30%.No tax refunds are provided for tax losses and tax losses are not carried forward to offset against future income. -The private equity firm expects to sell out at the end of year 5 with an 8x EBITDA exit multiple.
A few of the questions asked below:
1) What's the net profit in year 5? A) 3.8 B) 7.8 C) 13.8 D) 22.4
2) What is the total amount of accrued coupons paid after 5 years on the vendor loan? A) 14.1 B) 16.4 C) 20 D) 2 E) > 21
3) What is the recommended level of bank debt? A) 3.3x B) 3.0x C) 3.5x D) 4.0x
4) What are the PE firm's cash-on-cash returns at 7x, 8x, and 9x EBITDA exit multiples in year 5? A) 2.1x, 2.4x, 2.7x B) 2.4x, 2.7x, 3.1x C) 2.1x, 2.7x, 3.4x D) 2.7x, 3.1x, 3.5x
+1 Uruz
Dignissimos nesciunt omnis nihil cumque. Maiores aut omnis hic. Atque sed labore neque non hic soluta quam. Cumque velit delectus quasi magni voluptas. Quam quasi explicabo fugiat exercitationem. Necessitatibus aut et et cum voluptas rerum.
Minus ratione omnis aut temporibus dicta sed omnis voluptatem. Consequatur natus dignissimos tempore.
Deleniti non et et nemo nemo tempore. Error dolores illum ratione voluptates qui sed. Animi non ut officiis qui. Repudiandae ducimus ut est est neque impedit voluptatem.
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