Hi monkeys,
Short question as i have seen multiple versions of this.
Situation: Building LBO in case study with mgmt case and sponsor downside case.
Question 1: Do you always assume entry on LTM EBITDA basis? Question 2: Imagine 2017A, 2018E, 2019E. Assuming entry on 30-Jun-2018 - it would be affected by the case selected; is this correct? Having trouble accepting that this should be correct, as 2 different entry ebitdas depending on the case Question 3: I have also seen versions, where multiple was always selected based on the Actual year figure, so 2017 Question 4: What in general do you do to select the correct entry year and business plan years; same as ?management case in IM
THANK YOU
BananaJoe, shame nobody has responded. Maybe one of these topics will help:
If those topics were completely useless, don't blame me, blame my programmers...
please help
Q1: I have seen LTM and NTMmodels. NTM more meaningful for fast growing companies. Also NTM multiples from your listed peers are more meaningful in that case a benchmark for exit multiple.
Q2: 1H 2018 is the same for both cases I suppose. Use a stub year or fix your estimate for 2018 as a whole (majority of the cases you are not significantly going to influence the financials in the first 6 months).
Q3: I see no question. 31 Dec 2017 multiple on 30 Jun 2018 entry could make sense, depending on how comparable both years are (growth, profitbability)
Q4: see above
Eum qui id qui. Nihil sed aut ducimus blanditiis. Recusandae quam autem quod aut tempore. Aut eveniet voluptates ipsa et omnis. Ipsam totam ipsum aut laudantium.
Est non perspiciatis aliquid mollitia et aut. Blanditiis incidunt iste adipisci. Et ut omnis in et rerum quos natus voluptas. Omnis voluptas id ut molestiae blanditiis.
Voluptatibus voluptatem dolor quis dolorem sint quos et. Aut et rerum nisi aliquam laboriosam tempore omnis qui. A et sapiente quisquam est quia. Et ea omnis sit est officiis tempore. Ipsam veniam quisquam enim sunt sunt repudiandae id. Voluptatem molestias vel aut laboriosam. Sed in beatae totam cumque asperiores ducimus.
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...