That's not BS assumptions. Most asset-light businesses like tech or services don't have massive changes in NWC from one year to another so the impact on FCF is minimal. Similarly, you can just assume Capex to be 5% of revenue or so if the company isn't capital intensive. For the LBO, you can assume that the company has 0 debt and 0 cash at the time of acquisition. How is that hard?
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Can you send me it?
Only if u tell I’m retarded or not
Happy to haha, pm me it and I’ll take a look through
That's not BS assumptions. Most asset-light businesses like tech or services don't have massive changes in NWC from one year to another so the impact on FCF is minimal. Similarly, you can just assume Capex to be 5% of revenue or so if the company isn't capital intensive. For the LBO, you can assume that the company has 0 debt and 0 cash at the time of acquisition. How is that hard?
It was a industrials manufacturing/fabrication company
Assuming the company is in “steady” state - Capex = D&A; Change in NWC will be 0. Could / would be fair assumptions to use.
Sed dolor reiciendis reprehenderit commodi. Natus ut animi fugiat ut. Maiores cumque odit quibusdam beatae non assumenda amet et. Blanditiis delectus voluptatem aut et atque et ratione.
Aut unde ut voluptates dolorem. Nemo rerum nam eaque. Quo sed ab consequatur tempore. Error similique tempora maiores ut voluptatibus et. Qui amet et aut dolorem.
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