Modeling Management Fees in an LBO
In a typical LBO, are management fees included as an expense in the P&L statement or do they act similar to dividends and are included in the cash flow statement?
Does anyone know any good model management companies? I'm using finance to get to New York to only be discovered by a big fat modeling agency? Does anyone think this is a bad idea or it wont work?
Great idea - there is this actually an accomplished talent scout/banker on this board by the name of blumie who I would suggest looking up once you get to NY. I'm sure he could set you up with a few photoshoots...
my friend is doing the same thing...
Management fees paid in the normal course are just part of the P&L and go around the same line as normal corp g&a, because thats all they are. Promote and what not tends to be done in the form of preferred dividends or something similar.
Knowing your management structure is really the only way. They tend to all be different and not fun to model.
Agreed with PowerMonkey. Sometimes you also see them as a separate line item within "other expenses" on the P&L, which is what we typically do in our models
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