That's not BS assumptions. Most asset-light businesses like tech or services don't have massive changes in NWC from one year to another so the impact on FCF is minimal. Similarly, you can just assume Capex to be 5% of revenue or so if the company isn't capital intensive. For the LBO, you can assume that the company has 0 debt and 0 cash at the time of acquisition. How is that hard?
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Can you send me it?
Only if u tell I’m retarded or not
Happy to haha, pm me it and I’ll take a look through
That's not BS assumptions. Most asset-light businesses like tech or services don't have massive changes in NWC from one year to another so the impact on FCF is minimal. Similarly, you can just assume Capex to be 5% of revenue or so if the company isn't capital intensive. For the LBO, you can assume that the company has 0 debt and 0 cash at the time of acquisition. How is that hard?
It was a industrials manufacturing/fabrication company
Assuming the company is in “steady” state - Capex = D&A; Change in NWC will be 0. Could / would be fair assumptions to use.
Et est exercitationem est provident. Illo voluptatem magni quos quis et doloribus. Quasi natus sed ipsum eligendi. Odit possimus nihil explicabo praesentium reprehenderit velit. Commodi corporis debitis veniam aut amet.
Et consequatur placeat cupiditate asperiores. Voluptatum molestias sequi nobis natus nisi sapiente. Fugiat molestias perferendis deserunt consequatur eveniet rem totam.
Similique accusamus pariatur quia accusamus voluptatem beatae ab. Quasi placeat eligendi iste delectus quis voluptates.
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