Question about Cash in LBO
If I am doing an LBO model, and there is already cash on the balance sheet, who gets this? If the seller gets it (does not specify on a clear and free basis) then do I net this out of members equity? What if after netting it out the members equity is negative? Thanks in advance
If there is already cash on the balance sheet, I believe you can use the "excess" cash, as in net after removing operating cash, in your sources table. This would reduce your contributed equity requirement I believe
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