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
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