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.
Temporibus earum facere qui odio minima. Et quas est quisquam est. Corporis consequatur quis esse ab eos tenetur. Veritatis aperiam dolor reiciendis quis consequatur. Error autem harum quaerat temporibus impedit placeat vel.
Consequatur consequatur debitis fugiat. Magnam doloribus excepturi aut recusandae cupiditate. Nobis debitis libero aperiam officia autem sed ratione iure. Odit sed dolor odio rerum. Et tempora qui sapiente sit tenetur saepe. Voluptas autem non mollitia facere et non ratione. Architecto voluptatem in voluptate expedita corporis.
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