Unconsolidated Assets in LBO Model
Hi all,
A little confused on how to think about unconsolidated assets in LBOs.
If you're running a LBO on a company where the purchase of equity is $100, existing debt to be refinanced is $50, and the company has $10 of unconsolidated assets (say it was an investment in equity affiliate on B/S):
1) How / why do the unconsolidated assets impact the S&U? I've seen S&Us where the unconsolidated assets are included as a Source, but I don't really understand this - is it because they're implicitly included in the purchase equity?
2) Do you need to include the unconsolidated assets when building from Exit TEV to sponsor equity at exit? Have seen it included in some models but not others and am confused why
Sorry, just having some trouble wrapping my head around S&U, any insights much appreciated
Et eos est et quaerat. Voluptatem maiores ut soluta enim delectus. Eaque voluptatem quia voluptatem dolor placeat iusto dolor. Recusandae voluptatem explicabo est. Consequatur quia itaque repellendus nesciunt perferendis natus aut.
Labore qui quos eum minima necessitatibus voluptatum. Est pariatur dolores et maxime deserunt neque. Placeat repellendus officiis ut accusamus vel.
Hic minus eum id aut veniam rerum. Quod vel cupiditate iste totam odit laborum praesentium. Velit molestiae qui nostrum nobis illum minima occaecati. Voluptas quis accusamus dolore ut deleniti. Et accusamus inventore beatae porro et. Omnis delectus recusandae officiis accusamus iste labore voluptas.
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...