Modelling from CIM/ help
Hi guys,
Following questions when building a model from a CIM (case study 3-4h prep time) nad building BS
1.) Adjusted vs. normal EBITDA: Do i take the adjusted EBITDA from the IS in the back of the CIM or the unadjusted?
2.) NWC: If NWC for business plan period is given, should i take these numbers or build myself, by e.g. % of sales?
3.) Capex: If Capex is given, should i take these numbers or build myself?
2.) DTA / DTL: Can i ignore these going forward and reset to 0?
3.) NOL: Can i ignore going forward? Or am i required to build in?
4.) Existing GW amortization: Ignore?
5.) Accrued interest: Ignore?
6.) Minority interest?
7.) Impact of Pensions?
8.) Other non recurring items?
Thank you!
Not OP, but this is a super helpful comment thanks!
Thank you!
Question for your answers.
Goodwill - why amortisation; from my understanding there is an impairment testing instead of amortisation?
How is that reflected in S&U?
How is that reflected in S&U?
Please renumber the items in your first post - it's confusing.
Re 6 Goodwill: country specific. Think most GAAP will let you amortise it, while tax man has different rules. Re7: if you mean accured interest: just like normal debt of the target: use. If pensions: both source and use (in case it will be assumed by buyer) Re 8: if you mean minority interest: exclude the cashflow from your initial valuation. Enterprise value in that case excludes the minority interest. Then value seperatly (or leave it with seller) and add to purchase price.
IFRS only impairment is allowed I think?
OK. So would deduct from EV to Equity. If pensions paid back, not in S & U?
So not in EV to Equity bridge?
In General (what really confuses me): For the S&U on Uses: Here I put the Equity value that I calculated in the bridge. What about these other items; e.g. MI, pension, Accrued interest etc; do I put all of them in S&U?
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