PE - Prep Pack - Balance sheet check

Falistor's picture
Rank: Monkey | 39

Hello Everyone

This is my first post on WSO so here come two lines about myself. I am a business engineering student. I did my bachelor and master in Europe and I'm now studying at a top tier European university (think LBS/LSE/HEC). I've done internships in audit, PE and IB most recently. As I wanted to take my chances with PE recruiting, I decided to purchase the WSO prep pack which has tremendously helped me get my modelling right.

I have managed to complete the first full lbo model and my balance sheet did balance BUT when I compared it to the example answer I saw that the WSO check was off by 99 each year. So I went through the whole model again to realize that in the example answer, LFCF for debt repayment of year 1 is actually hardcoded as (100) whereas I simply added the proceeds from stock issuance to the LFCF.

I don't understand why one would purposefully input the LFCF for debt repayments (cell E202). Am I wrong? If yes, could someone please explain the reasoning to me?



All Europe
United Kingdom

Comments (3)

Jan 26, 2015

Hi Falistor: If you copy the formula in the cell to the left of the hard coded 100 the model should balance. I believe the 100 was inadvertently left in the cell when stress testing the formulas for the revolver debt.

    • 1
Jan 26, 2015

To the right of the hard code I mean.

Apr 30, 2015