Modelling D&A if not given

Summer Associate in PE - LBOs

I would model D&A = Maintenace Capex + Depreciated Expansion Capex, correct if wrong! Please help urgent thanks

Comments (8)

  • Analyst 1 in IB - Ind
Mar 24, 2020

% of sales dude. don't overkill yourself. or get it from CFS. cleanest source

  • Summer Associate in PE - LBOs
Mar 24, 2020

That would only be for cim case right? for own case, I would not take from Cfs?

Mar 24, 2020

put together a depreciation waterfall and project capex

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  • Summer Associate in PE - LBOs
Mar 24, 2020

How do you do that? Take maint and growth Capex from cim and depreciate that using waterfall?

Mar 25, 2020

I'm not in PE but the CIMs I receive are typically just a Pro-Forma P&L and working capital schedule (if I'm lucky). I typically just ask the banker what the historical CAPEX and D&A has been, then verify in confirmatory diligence.

Curious to see how others go about it.

Mar 30, 2020

Have it equal capex. That's a pretty conservative approach and you don't really want to be underwriting returns based on D&A or the tax shield you get from it exceeding capex.

  • Summer Associate in PE - LBOs
Mar 31, 2020

Equal to Maintenance Capex or total Capex?

Apr 1, 2020