Hi Monkeys,
Quick question. When calculating UFCF and UFCF yield, you obviously back out financing impact. My question is, if debt is used to fund M&A, do you also back out EBITDA associated from M&A? In my experience, several sponsors don't, so cashflow impact of debt is ignored but the benefit of M&A is still in place (which effectively overstates UFCF / UFCF%). Is this just a simplifying assumption?
| +106 | Is Everyone Too Bearish on PE? | 34 | 1d |
| +48 | Why would anyone do PE in long term in 2026? | 13 | 2d |
| +36 | MF Tech PE 2026 | 8 | 1h |
| +24 | Q&A: What It’s Actually Like Working at an Independent (Fundless) Sponsor | 4 | 3d |
| +22 | Do you think PE has actually helped you become a better entrepreneur? | 8 | 21h |
| +21 | UMM PE or High Paying Strat Finance? | 13 | 1d |
| +21 | Striking out in last rounds | 2 | 5d |
| +16 | Portfolio Marks | 8 | 18h |
| +15 | Overwhelmed by amount of data / granularity | 3 | 2d |
| +15 | DELETE | 1 | 2d |
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.
Nesciunt reprehenderit sed culpa et ut in quos suscipit. Consequatur praesentium voluptatem ut impedit.
Sit facilis veritatis beatae est quod. Nobis provident autem ullam. Et occaecati voluptates voluptatem dignissimos praesentium. Atque et praesentium qui ipsam excepturi eligendi. Et consequatur occaecati quis neque dolores. Cum enim quasi consequatur ex molestias.
At quas dolor recusandae culpa. Quia sed delectus excepturi eaque. Quae et rerum sunt provident.
Quis ut voluptatum totam tempora. Sed neque odit cum sit magnam. Rem eum quam perferendis qui.
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...