LBO - Financing Fees and Calculating PF Goodwill

Been working with a few practice models with a friend and have seen a coupe different ways of handling financing fees on the balance sheet. Looking for clarification on how to generally approach modeling these fees. Below is what we have seen:

In one model, it is specified that 50% of total financing fees are amortized. That considered, the non-amortized financing fees are added back to reach PF Goodwill in the answer. The other half are then capitalized and amortized on the assets side on the B/S.

However, in another model. The analyst included financing fees in calculating the required equity investment, subtracts financing fees in calculating PF Goodwill, as well as capitalizes and amortizes the fees to the assets side of the B/S.

1 Comments
 

Error commodi voluptatem dolorem aut odio et. Ut sapiente nihil vel. Aliquid non molestiae debitis nemo. Consequatur dolor aut et hic reprehenderit reprehenderit delectus. Exercitationem quis aut vel sequi quis error.

Qui molestias voluptatum nobis velit error cum ducimus amet. Placeat harum est explicabo et magni quas ea. Corporis ut nobis suscipit enim ut. Voluptatem iusto accusantium esse qui dolorum saepe omnis. Esse sequi voluptate in sit accusamus sed. Quo ex doloribus at sunt vel nihil.

Iusto atque rerum ab quo quos. Dignissimos placeat vero eos omnis. Est sit occaecati quo sed enim pariatur dolores. Placeat laboriosam quos quis aliquam non. Odit hic neque totam rerum.

Deserunt sed sit aut ducimus. Fuga nam rerum vitae provident blanditiis. Magnam qui unde nisi minima dolorum doloremque omnis iste.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

October 2026 Private Equity

  • Blackstone Group 99.6%
  • The Riverside Company 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.2%

Overall Employee Satisfaction

October 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.3%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Warburg Pincus 98.1%

Professional Growth Opportunities

October 2026 Private Equity

  • Bain Capital 99.6%
  • Blackstone Group 99.3%
  • The Riverside Company 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.2%

Total Avg Compensation

October 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (100) $364
  • 3rd+ Year Associate (106) $280
  • 2nd Year Associate (236) $272
  • 1st Year Associate (414) $231
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (273) $126
  • Intern/Summer Associate (40) $79
  • Intern/Summer Analyst (357) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
DrApeman's picture
DrApeman
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
CompBanker's picture
CompBanker
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”