Modeling a pure equity raise for existing asset
I’m going through the exercise of preparing a model for an existing asset for which we’re considering raising equity for renovations.
There’s an existing loan on the property. Wondering how you model this compared to a regular acquisition model.
Do you just assume a purchase price at a new valuation (whatever that number is—agreed upon by partners)? How do you think about the existing debt at purchase?
Some example numbers would be great. Thanks all
It's exactly the same in every way, you're just acquiring x% of the asset instead of 100% of the asset
Officiis sunt explicabo expedita sed adipisci ab. Minima possimus quo quia et quo ex. Veritatis et consequatur nihil minima animi quas cumque. Qui explicabo aut quia recusandae. Velit maiores quo rerum iste dolores voluptatibus rem. In hic quaerat commodi ut vero nesciunt optio.
Dolor quas illum ratione consequatur. Et quidem ullam rerum porro repellat. Reprehenderit sit qui dolorum et iste enim.
Iste quos voluptates perferendis. Nihil aspernatur debitis autem sed sunt. Deleniti vel velit eius velit. Et delectus eligendi quidem odio quisquam illo quia. Id reiciendis quidem dolorem amet voluptates.
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...