LBO Modeling
net working capital = - ANSreceivables + inventory - payables
receivables days = - ANSreceivables/sales x 365
inventory days = - ANSinventory/cogs x 365
payables days = - ANSpayables/cogs x 365
capex is estimated as a - ANS% of sales, unless there is a more reasonable method
depreciation is estimated from a - ANScapex/depreciation multiple
sources of funds - ANScash, revolver, debt (including revolver), equity
uses of funds - ANSequity acquired, existing debt refinanced, debt issuance fees, advisory fees,
minimum cash
Equity value = - ANSacquisition EV - net debt
Acquisition EV = - ANSentry LTM ebitda x entry EV/EBITDA multiple
main items to show in IS - ANSnet sales, cogs, EBITDA, depreciation, EBIT, interest expense,
EBT, tax expense, net income (where interest expense links to the debt schedule)
main line items to show in BS (assets) - ANScash, receivables, inventory, pp&e, investments,
goodwill, intangibles
main line items to show in BS (liabilities) - ANSrevolver, debt, payables
main line items to show in BS (equity) - ANSNCI, retained earnings, equity
cash flow statement flow down - ANSebitda - cash interest expense - tax expense - changes in
net working capital - capex = cash flow available for debt repayment - mandated repayments =
cash flow available after mandated payments + revolver issuance (repayments) - accelerated
repayments = cash flow for the year
cash flow from operations includes - ANSebitda, cash interest expense, tax expense, changes
in net working capital
cash flow from investing includes - ANScapex
net working capital = - ANSreceivables + inventory - payables
receivables days = - ANSreceivables/sales x 365
inventory days = - ANSinventory/cogs x 365
payables days = - ANSpayables/cogs x 365
capex is estimated as a - ANS% of sales, unless there is a more reasonable method
depreciation is estimated from a - ANScapex/depreciation multiple
sources of funds - ANScash, revolver, debt (including revolver), equity
uses of funds - ANSequity acquired, existing debt refinanced, debt issuance fees, advisory fees,
minimum cash
Equity value = - ANSacquisition EV - net debt
Acquisition EV = - ANSentry LTM ebitda x entry EV/EBITDA multiple
main items to show in IS - ANSnet sales, cogs, EBITDA, depreciation, EBIT, interest expense,
EBT, tax expense, net income (where interest expense links to the debt schedule)
main line items to show in BS (assets) - ANScash, receivables, inventory, pp&e, investments,
goodwill, intangibles
main line items to show in BS (liabilities) - ANSrevolver, debt, payables
main line items to show in BS (equity) - ANSNCI, retained earnings, equity
cash flow statement flow down - ANSebitda - cash interest expense - tax expense - changes in
net working capital - capex = cash flow available for debt repayment - mandated repayments =
cash flow available after mandated payments + revolver issuance (repayments) - accelerated
repayments = cash flow for the year
cash flow from operations includes - ANSebitda, cash interest expense, tax expense, changes
in net working capital
cash flow from investing includes - ANScapex
