#help! LBO modelling questions
Hello! I'm having trouble with a few things beyond what was covered in the FMVA course for LBOs. Would appreciate any insights. Thank you so much!
1. How do you adjust goodwill on the balance sheet? I don't think we straight line existing/0 this out so is it a PLUG to balance A=L+E then? Or is the new Goodwill to straight line = Purchase price - (PPE + cash + A/R - A/P - old debt)? Some users say we can use premium paid on current share price too but it doesn't sound right to me
2. How to account for pre-purchase ESOP? Does this show up under 'Source of Cash' similar to management equity?
3. Likewise, should ESOP and sponsor's equity be separate items on the balance sheet? Or can I sum them up into 1 line and use this for IRR calculations too?
Laudantium eos eius odit ullam vitae sed. Aut sapiente facilis sed est deserunt id optio. Omnis aliquid qui ratione voluptatem. Corrupti necessitatibus quia consequatur omnis repellendus quasi tenetur. Nulla impedit ullam quis quisquam eos quod dolores. Quae sapiente consequatur voluptas sapiente.
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...