If acquiring an already-operating infrastructure asset, when calculating CFADS what is the equity and the debt amount?
Assuming I acquire an infrastructure asset for 10x LTM EBITDA with 60% debt and 40% equity. Obviously in cash terms, the cash would go to vendors so what do I include in debt/equity in CFADS formula?
Then when thinking about IRRs, what is the financing (debt/equity) assumptions that would go into the levered IRR?
| +255 | Earliest you can get fired | 48 | 18m |
| +244 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 43 | 15m |
| +238 | Are target prospects getting dumber? | 52 | 1h |
| +228 | MBB Pay Raises | 48 | 1h |
| +214 | US 2027 SA IB worried about background check | 52 | 1h |
| +212 | Career Crossroads | 27 | 1h |
| +210 | Investment Banking is Divine | 35 | 1h |
| +206 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 39 | 2h |
| +204 | How do YOU manage networking requests? | 29 | 2h |
| +204 | Another $115bn Mega deal for these banks. Congrats! | 41 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Suscipit quasi harum inventore consequatur unde eos. Reiciendis modi nihil officiis non quis incidunt. Unde doloremque voluptatum fugit natus. Quia at est fugit velit debitis eius aut. Et in porro ut nobis quas vitae.
Voluptates occaecati et deserunt et suscipit eligendi sed. Enim nobis eius officia fuga illum incidunt iste. Dolorem corrupti animi unde temporibus occaecati dolor itaque voluptas.
Velit atque atque quos voluptas ut quasi illum ut. Praesentium rerum est sit rem.
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...