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Well known VC firms to finance CapEx
Hello, Planning to launch my own company which will require considerable investments in CapEx (construction). Still weighing my options between the usual term loan or raising equity. If I was to choose the equity route, any known VC firm would be willing to finance CapEx? There's a tech and...
Capex in valuation
Hi guys, Say your target has likely under invested in capex and a buyer will have to renew some of the assets. 1. How do you test for this hypothesis? 2. How do you quantify the level of under investment? 3. How do you adjust valuation to reflect the amount that will have to be invested in capex?...
Depreciation in FCF calculation
Hello. This might be somewhat a confusing question but I hope someone can explain it to me better than my prof haha So for free cash flow, one of the formulas is FCF = NOPAT - △NWC + Depreciation - △Capex And Capex is generally △Capex = △PP&E + Depreciation . So what's the point of adding...
Capex question
Hi guys, Would you have a good resource that would explain how to analyze and interpret maintenance and growth Capex numbers please? This is rather confusing to me. For instance b say the average life of the assets is calculated at 6 years and average remaining years is 2 years: what does it tell us...
Capex Facility - Drawdown
Hi all, Let's say that you have a Capex facility with a tenor of 10 year to fund 70% of Capex. Let's say Capex is $20m per year. Do you draw everything in year zero, e.g. $140m, or do you do the drawdown each year, i.e. add $14m each year to your debt? Thanks!
Use Pre-Sales proceeds to expense Capex?
What does it mean to "Use Pre-Sales proceeds to expense Capex?" I'm new to financial modeling and was doing an exercise on a residential development. I have items such as Revenues, Opex, Construction costs. Summed up in Total Inflows, Total Outflows and Net (Un)levered Cashflow.
Proceeds from the sale of assets and FCFF
Hey guys, Quick question. Should the proceeds from the sale of assets be included in the FCFF? In other words, should I use the formula "EBIT (1-t) + Non-cash adjustments - Change in OWC - CAPEX + Proceeds from the Sale of Assets" to calculate FCFF? Thanks in advance
CAPEX Project or M&A - Interview Case Study
Hi all, I have a Case Study Interview coming up where I will have to decide between two acquisitions and one CAPEX project. What are the key points you would cover when deciding between organical and inorganical growth? Truly appreciate your help, thank you.
Can anyone help with LBO modeling? "How do you account for the "bonus" depreciation in an LBO?
This is for all the modeling pros out there who can help. In a full 3-statement LBO model, how do you take into consideration the "bonus" depreciation until 2023 introduced by the tax reform? (i.e., 100% of Capex incurred) From what I understand, GAAP depreciation was not affected so the Income...
Which capex I should use? (one in cash flow; one in ppe schedule)
Hi guys, I'm always confused of which capex I should use for FCF calculation or company analysis. There are two capex in financial statement, one is from cash flow segment and one from ppe schedule. So which one I should use? Thanks very much!!
Capex in JV
Hello everyone I have a quick accounting question - lets say you are looking at the statements of a company that has a JV in which it owns 40% of it. Every year this company puts 100 of Capex in the JV. How would this 100 be reflected in the 3 financial statements? Will this 100 of Capex simply be...
Case study model
Hi all, Posting in this forum for obvious reasons and hoping this isn't too stupid a question. I'm currently working my way through a real estate case study and I have been tasked with modelling a multi-family apartment asset. Amongst the criteria for the asset is the following statements: *...
How do you calculate CapEx?
When doing a DCF and calculating Capex, do you just use "purchase of PP&E" in the cash flow statement? Are there other ways?
Technical Question: Depreciation/Half-Year Convention
Going over some of the WSO PE prep material, and one of the prompts says a project will take 2 years to complete. Approximately 75% of the project is being complete in year 1, and the remaining 25% will be completed in year 2. Useful life of the project is 10 years. The CapEx for the project in year...
Another CapEx question.. What is it on here?
What is the capex here? I am a little confused with this. Is it -31,736? Thanks!
DCF for a company that has historically invested heavily in Capex?
The capex for this target company has been high in recent years is due to building a new facility(poultry production/processing), however its a rather "mature" business. If historically(last 3 years) has all been abnormally high capex, how should I incorporate this into my DCF ? I was thinking I can...
Reading materials for RE PE
Hi I recently joined a major RE PE firm as an analyst. My job is mostly modeling but I'd like to understand the other components of the deals I'm involved on. I'm totally lost on calls/meetings regarding: Capex (technical aspects of it, like discussing a budget with a contractor for a building...
How to find that there is enough cash to finance CAPEX
Just want to confirm that do it correctly: Let's say the company announces CAPEX of $100mln for 2014. To understand whether they will need additional financing I would: 1) check their balance sheet to identify the cash and equivalents for the year 2013 end 2) estimate their sales (production level *...
capex diff ways of constructing
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EV/EBITDA vs EV/EBIT vs EV/(EBITDA-capex)? Please help?
Hi guys, Could someone please help explain the difference of when to use EV /EBIT vs EV /( EBITDA -capex)? I know you generally use EV /EBIT for companies with high capex, why though? Because of the high D&A, but don't you want to account for that? like EBITDAR for airlines, gaming/casinos, etc? I...
Capex to be used or not in Capitalization of Earnings Method?
Hi, I was curious to find out if capex should be used in a capitalization of earnings method or not. Reason I ask is because I know that it is the norm the equate capex and d&a in the terminal year of a dcf (netting each other out) and then capitalize the cash flow net of w/c investment. By using...
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