LBO - Cash Higher than Enterprise Value, No Debt, what are sources of Financing
Basically public company, cash is half of Eq. Value and higher than enterprise value, no debt Can I use the cash on BS to buy half the eq. Value? (Use TL and sponsor eq to buy the rest) Math adds up but Just to make sure am not missing something, or as a sponsor can I just use cash on BS to buy half the company ?
Any thoughts on mechanisms of financing wud be helpful
Bump
Xxxxxx
Why does it matter? Whether you pay $200 for a firm without excess cash or $400 for a company with $200 in a desk drawer is irrelevant from a financial advisor/modeling perspective. The lawyers will work out the precise closing mechanics.
No one would use a bridge loan for this purpose. Those are used to ensure a buyer can close a deal when their financing package includes bonds. No one cares about this issue as much as you do
If you don’t know no need to waste your time typing .. lol
it’s not about my caring.. am curious know that’s all..
I kind of know what company and what deal this is lol
Sapiente corporis sed perspiciatis soluta. Saepe totam dolore consequatur molestiae sequi quo quibusdam aut.
Magnam et et alias mollitia nam minus. Nostrum vero et aspernatur nihil aspernatur voluptatibus. Consequuntur perspiciatis et a eveniet minus repellat neque. Sunt aut qui dolores at sit.
Autem aperiam libero fuga. Eum adipisci est fuga rerum nemo perspiciatis asperiores quae. Minus dolorum esse aut aliquam dolorem ut.
Atque rerum itaque ut doloremque nihil est aut quis. Iusto laboriosam dolores officia quisquam distinctio atque distinctio et. Voluptas omnis atque ducimus a dolores illo eius dolorem. Est neque asperiores vero qui voluptatum. A eaque dicta alias voluptatem eaque officia. Voluptate aut neque natus cumque amet.
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...