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Published byPiers Randall Modified over 9 years ago
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Financial Modeling Overview Presented to: December 2, 2010
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2 AGENDA I.Modeling Overview II.Assumptions III.Transactional Balance Sheet IV.Goodwill V.Debt Page VI.Re-linking financials VII.DCF
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3 We have our basic model with is, bs, cf, d&a, and debt schedules We need to forecast : Determine what our deal will look like Create a transactional balance sheet Calculate Goodwill Update the debt page Ensure that the balance sheet balances OVERVIEW
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4 Step 1, we need to come up with our assumptions about the proposed transaction What do we know? We know that a financial sponsor (investment firm) is looking to acquire Acme Manufacturing from the retiring owner for $27 million dollars (cash free and debt free transaction) They were able to secure a senior term loan for $10 million, a subordinated loan for $6 million, and a revolving line of credit of $4 million (to help pay fees – not all of this line will be drawn at close) The retiring owner is willing to roll $2 million of their proceeds into the new company so that they will still retain a portion of the business going forward ASSUMPTIONS
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8 Step 2, Create a transactional balance sheet TRANSACTIONAL BALANCE SHEET
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10 GOODWILL
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11 GOODWILL
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12 GOODWILL Begins Copy Formulas Down Copy Formulas Right
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13 GOODWILL
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14 TRANSACTIONAL BALANCE SHEET
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15 Relink the debt page for new debt DEBT
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16 DEBT
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17 CASH FLOW STATEMENT
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18 BALANCE SHEET
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19 DISCOUNTED CASH FLOW
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20 DISCOUNTED CASH FLOW
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21 DISCOUNTED CASH FLOW
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22 DISCOUNTED CASH FLOW
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