Adjusted Present Value (APV): Formula, Tax Shields and Debt SizingCalculate APV from unlevered cash flows and financing tax shields, with a worked example and the assumptions behind debt sizing.
Exit Multiple and LBO Valuation: Solve Purchase Price from Target IRRReverse-engineer an entry price from exit EBITDA, debt, cash and a target equity return. Includes a five-year buyout example.
Discounted Cash Flow (DCF): WACC, Mid-Year Convention and Terminal ValueBuild a DCF from unlevered free cash flow, choose a timing convention and calculate Gordon growth terminal value without double counting cash.
Modeling Cash Sweeps: Excess Cash and Debt Repayment PrioritiesModel mandatory amortization and cash sweeps in a debt schedule, including liquidity floors, tranche priorities and an Excel example.
PIK Interest: Capitalization, Compounding and Exit PayoffUnderstand payment-in-kind interest, model principal accretion and distinguish noncash interest from tax deductions and exit repayment.
Debt Sizing: DSCR, Interest Coverage and Debt/EBITDAUse debt-to-EBITDA, interest coverage and DSCR together to assess debt capacity, with calculations and covenant-definition cautions.
How to Build a Valuation Football Field in Excel and PowerPointCompare valuation ranges on a shared axis, construct floating bars in Excel and present assumptions clearly in an investment committee deck.
LBO Value Creation Bridge: Growth, Multiple Change and DeleveragingDecompose equity-value change into earnings growth, multiple expansion or contraction and net debt reduction, with a fully reconciled example.
How to Fix Circular References in Excel Debt and Interest SchedulesDiagnose interest, cash-sweep and purchase-price loops, choose a non-circular convention or controlled solver, and test convergence.
EBITDA vs NOPAT: Which Starting Point Fits Your Valuation?Compare EBITDA and NOPAT, bridge each to free cash flow and keep interest, depreciation and tax shields from being counted twice.
M&A Formula Dictionary: Cash Flow, Valuation, Credit and ReturnsA linked reference to UFCF, WACC and beta, DSCR and FCCR, terminal value, MOIC and IRR, plus enterprise and equity value definitions.
Unlevered Free Cash Flow (UFCF): Formula and Worked ExampleCalculate UFCF from EBITDA or NOPAT, with working-capital sign conventions and the distinction between operating and financing cash flows.
WACC, Modigliani–Miller and the Hamada Beta FormulaCalculate WACC with market-value weights and unlever or relever beta using the Hamada equation, with assumptions and an example.
DSCR and Fixed Charge Coverage Ratio (FCCR): Formulas and ExamplesCompare cash debt-service coverage with fixed-charge coverage, calculate illustrative ratios and interpret lender-specific definitions.
Terminal Value: Gordon Growth vs Exit MultipleCalculate perpetuity-growth and exit-multiple terminal values, discount them consistently and test growth, reinvestment and multiple assumptions.
MOIC to IRR: Conversion Formula and Five-Year Lookup TableConvert MOIC to annualized IRR for a single exit, use a five-year lookup table and understand why dividends and timing break the shortcut.