Hi guys, assuming a PE fund will invest minority stake in a listed firm. How do I do the return/IRR analysis? appreciate any insight.
Trending Content - Investment Banking Forum
| +116 | I think I’m logging off after ER visit | 23 | 19h |
| +97 | Is it Bad That I ALREADY Don’t Care? | 31 | 1h |
| +91 | Senior Banker's Guide to IB Recruiting / Group Placement (with a Healthcare Bent) | 10 | 6h |
| +81 | AI Creating More Work | 27 | 4h |
| +61 | Shit PWP Culture | 43 | 2h |
| +59 | Consulting Son or CorpDev Daughter? | 6 | 4d |
| +44 | How easy was recruiting for you? | 21 | 4d |
| +36 | 22yo IB Analyst just had mental health breakdown | 11 | 1d |
| +30 | How tf do i control a stutter? | 14 | 2h |
| +29 | Uchicago is paradise | 4 | 1h |
Career Resources
What does it come in at and what does it go out at...
Gets a little harder with public companies because of market dynamics, but just control for those variables and look at it in the same way you would build a follow-on model driven by a comps analysis or DCF for a majority stake
Watch for items like dilution due to SBC and other convertible items, warrants, options, RSUs, PSUs etc. but its still just building an operating model and valuing the company then assuming you are able to sell % of x that you own (in its simple form)
Quis nihil consequatur impedit animi. Fugiat tenetur ea cum beatae ut dignissimos. Eos qui quia ab quo. Doloribus culpa similique rerum rerum ea rem et.
Suscipit ut distinctio quas ratione ullam modi. Tempore qui sint quae illum dolorem aliquid suscipit. Architecto quos nemo laudantium deleniti voluptatem ut corrupti.
Expedita odio tempore veritatis nemo quo. Est ea numquam illum ut.
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...