Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

MGT 185

Investment Banking

Leveraged Buyout Assignment

Overview

· Take your existing company and then assume that it is going through a leveraged buyout and complete the spreadsheet

· Your company may not have positive cash flow, EBITDA, if this is the case, please do the best you can with the proviso that none of coverage and leverage ratios will work.

· Use the value you arrived at when completing the comparable companies, precedent transactions, and DCF assignments. You will most likely need to decrease the value of your company to make the numbers “work.”

Spreadsheet

· Input the amounts of equity and debt in order to complete the spreadsheet and produce the “maximum” return for the investors in the transaction.

· There is no right or wrong amount for the various components as long as the sources of funding equal the uses of funding.

· Please use the sources of funding outlined in the lecture slides.

In order to receive 85 out of 100

· The spreadsheet should be filled out

· Please also include a document that answers the following questions:

1) What is the value you arrived at for the leveraged purchase?

2) What is the return to the investors in the transaction?

3) Please explain all the assumptions in your model.

In order to increase your score

· Complete upside and/or downside projections and explain the changes in the returns to investors