For the guys who are already in PE now, I have been curious as to how you take into account investments where there is a large pension liability? Do you simply treat it as debt? Do you ever re-evaluate the PV liability of the pensions? Or are there cases where the pension liability is a dealbreaker?
Thanks in advance!
| +44 | Those unemployed in PE 3+ months, how do you make progress every day? | 23 | 5h |
| +18 | Friend considering moving from the US to Hong Kong for an IR Role – How difficult would it be to return? | 1 | 20h |
| +17 | Is it possible to get no comments as an analyst? | 6 | 8h |
| +13 | London PE Secondaries / Co-Investment Comp | 4 | 16h |
| +12 | Indian PE Landscape | 2 | 5d |
| +9 | Arcline thoughts? | 7 | 2d |
| +9 | JPM PB to Institutional Capital Raising | 1 | 5d |
| +8 | Searchfund | 5 | 4d |
| +7 | PE to L/S Equities | 8 | 11h |
| +6 | PE Recruiting: M&A vs Rx | 3 | 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.
push
In Europe the PV of a pension liability is/should be evaluated by your buy-side accountant - defined benefit plans are a bitch. Have always seen it being treated as a debt-like item. If there is some sort of obligation to throw extra cash at the pension plan in the short run, I would take it in my cash flow model instead of debt-item as discount rate for PV is way different than your IRR.
Thank you!
Working on a deal now. Treat it as debt. The seller must satisfy at close.
Tenetur voluptatem voluptates in dolores deleniti quis. Libero ut asperiores commodi quas eligendi. Dolores nesciunt veniam eos ea quis nemo quaerat accusamus.
Sint excepturi ipsam optio ipsa voluptatum. Tenetur non laboriosam sint. Dolores autem exercitationem accusamus veniam qui. Enim perspiciatis possimus rerum non aut. Fugit qui qui autem nemo maiores voluptatem. Ipsam et a exercitationem et nam.
Et dolores sed facilis impedit voluptatem id porro necessitatibus. Neque ut fugiat voluptatem voluptatibus eaque eligendi et.
Eos illo nihil neque iste fugit dolore. Possimus a excepturi omnis non. Aut dolor sint repellendus.
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...