Hello Everybody,
assuming I intend to buy a company with a 100 balance sheet of which 80 is Equity, 10 Liabilities and 10 a shareholder loan.... Seller wishes to have that shareholder loan "acquired".
Why would I acquire a loan? Don't you usually subtract Net Debt from the Enterprise Value?!
Why would I pay money for a future committment that is on the balance sheet already?!
I would appreciate help with this case very much! Thank you, Lars
| +433 | Is UBS really that bad? | 77 | 4h |
| +265 | Investment Banking is Divine | 40 | 2d |
| +219 | Another $115bn Mega deal for these banks. Congrats! | 46 | 10h |
| +216 | US 2027 SA IB worried about background check | 53 | 2d |
| +64 | Useless associates | 14 | 37m |
| +51 | Differences in Restructuring Teams? | 24 | 6h |
| +44 | FIG Pigeonholes you - is it true? | 14 | 50m |
| +40 | Is Houston SA 28 recruiting already over? | 34 | 1d |
| +38 | Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal | 8 | 2h |
| +36 | How do you manage nerves in IB technical interviews? | 8 | 13h |
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.
Anybody?
It's not clear what you're asking. Either the loan gets paid back or it gets rolled over into the new balance sheet.
The loan was given to the company in order to fund an acquisition that has been integrated into the company by now. I'm not sure whether it would be a logical move by us to indirectly finance this past acquisition.
You say "Either the loan gets paid back or it gets rolled over into the new balance sheet."
**Isn't this the same in terms of a cash-flow perspective? **When we pay back the loan we have a -10 cashflow right now. When we roll over the loan into the new balance sheet, which will be owned by us after the transaction, we will have a -10 cashflow over the course of the next years.......
A fugiat quaerat et nam tenetur. Dolores omnis laudantium est officia odit adipisci. Mollitia officiis quia molestiae laboriosam nobis est quaerat. Omnis eaque dolore quos autem repellendus rem sit.
Ea quo suscipit odit atque qui. Sunt labore quia harum qui. Velit tempora ut unde voluptate sunt.
Et est nesciunt earum nisi velit aut. Quae distinctio nostrum iure optio earum temporibus sunt. Et rem eos iste corporis.
Vitae at libero omnis odit minima omnis deserunt illo. Velit expedita voluptate et aut consequatur consequuntur. Minima excepturi ut sit labore sequi.
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...