Hi guys,
Theoretical question: we're building a S&U for a company with the following characteristics:
- EV = 1000 (EV / EBITDA = 10x @ 100 EBITDA)
- We know that the company has 100 of associates and 100 of NCI, 100 of provisions in the bridge (that should stay in uses?)
- Let's say you want to refi the existing bank debt of 300
What would the Uses look like?
Thank you!
| +123 | What’s “the path” now? | 49 | 4d |
| +71 | Is Everyone Too Bearish on PE? | 20 | 15m |
| +55 | Don’t go into finance unless you really like markets / deals / investing | 11 | 3d |
| +45 | Why would anyone do PE in long term in 2026? | 12 | 15h |
| +35 | 3rd Year IB Analyst, Top Bucket, Still No PE Offer. What Would You Do? | 18 | 1d |
| +25 | Is This Normal in LLM PE | 10 | 2d |
| +21 | Striking out in last rounds | 2 | 1d |
| +21 | UMM PE or High Paying Strat Finance? | 7 | 10h |
| +20 | On Cycle Preparation | 8 | 19h |
| +18 | Q&A: What It’s Actually Like Working at an Independent (Fundless) Sponsor | 4 | 15h |
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.
EV= 1000
Equity value: 1000 - bank debt 300 - NCI 100 - provisions 100 + associates 100 = 600
Uses: (assuming ou buy out the NCI and assuming associates treated as cash like item)
Purchase equity: 600
Net debt: 400
Total Uses: 1000
Sources: New debt + sponsor equity
what are associates and provision? are these equity like or debt like items? haven't ever hear dof them.
By combining all factors, it's not clear that associates are not part of EV. Especially in this example where EV is calculated as EBITDA (excluding income from associates) * multiple.
Uses
Purchase price shares core business = 600
Repay bank debt 300
Buy out NCI 100
Buy associates 100
Sources
Assumed provisions of 100
Buyer financing 1000
Uses doesn't balance with sources here - how does that work?
Thanks
sorry i cannot follow
what are assumed provisions? why?
and why would you buy associates?
Neque et aperiam et sunt occaecati temporibus. Illo aut voluptate ut delectus minus iure.
Facere consequatur accusamus nam sapiente. Aut fuga exercitationem totam minima provident voluptate. Et minima tempore nulla et id odit. Id sunt corporis illo praesentium cupiditate.
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...
Quia voluptas et nobis iure nisi. Rerum exercitationem velit aspernatur consectetur. Quo ipsam iste eius rerum et. Iure consectetur iste animi sed a. Rem suscipit et in.
Rerum totam deserunt necessitatibus necessitatibus aut dolorum. Qui dolore ipsa delectus quis. Quis reiciendis esse sequi corporis qui. Voluptatem laudantium consequatur temporibus possimus veritatis ut dolore. Qui sint dicta et ea non error debitis amet.
Et voluptas distinctio facilis quia repudiandae repellat dicta. Doloremque aut corrupti modi nihil. Impedit amet nihil numquam ab non quis iure. Molestiae nihil rerum sunt quo officia consequatur est. Optio tenetur fugit dolores non sunt quos tempora.
Adipisci qui nulla rerum fugiat asperiores. Ducimus quod vero debitis qui modi est adipisci.