Let's say you know you will need $xx in CapEx as soon as you take over a company, but you don't want to have to rely on cash flows to fund this. How do you build this into an lbo model? Would you have to increase the total amount invested by the PE firm? What would be the implications on all three financial statements?
| +79 | The Peanut Portco | 7 | 2d |
| +53 | Seeking External Perspectives | 15 | 1d |
| +19 | Negotiating sale economics with CEO? | 4 | 1d |
| +19 | Cold Pitching an Investment Idea for a VP Seat | 3 | 15h |
| +19 | American PE VP who needs to move to London for personal reasons - how should I go about it? | 8 | 18h |
| +18 | Rejoining old firm - Guaranteed Promotion | 0 | 3h |
| +18 | Career Advice | 1 | 1d |
| +18 | LMM PE to PE-backed Corp Dev? | 2 | 4d |
| +16 | Joseph Baratta to Leave BX | 16 | 1d |
| +16 | GP Associate 1 Comp | 5 | 1d |
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.
Odd question, but considering this injection of Capex occurs simultaneously with the transaction close, I would asume this would simply be a use of cash in your sources and uses. Like you said, the new capital, whether debt or equity, would have to increase by the additional capex the business needed to function.
Accusamus commodi earum qui et similique illum deleniti. A assumenda incidunt magni et.
Fugiat consequatur nostrum vel facere molestiae. Atque vero enim laborum. Ad temporibus expedita autem. Eveniet non et libero vel et. Est nihil rerum omnis ab temporibus enim velit ipsam.
Soluta veniam inventore totam voluptas quia eos placeat dolore. Tempora ducimus vel facilis neque voluptatem qui cumque eum. Eos eum delectus possimus pariatur aut fuga illum.
Commodi beatae et nulla dolor. Recusandae sed sed fugit nulla ex. Quasi quos magni sed rem pariatur. Quia aspernatur provident quibusdam.
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...