One Page EVA

The definition of Economic Value Added (EVA ), is given in the following  link of Wikipedia.

http://en.wikipedia.org/wiki/Economic_value_added 

I have tried to create a one page simplified model  for examining the concept of EVA. My financial model can be downloaded from the following link:  

https://www.box.net/shared/22tik044smnf5j17b3r6

The beauty of this financial model is in one page you can see the entire flow of EVA calculation. Of course, you have to calculate the Weighted Average Cost of Capital ( WACC) separately, and take is as an input to my model. See my other articles in the blog to know how WACC is calculated.

One Page Financial Model For Leveraged Buy Out (LBO)

Click here to download my Financial Model on Leveraged Buy Out (LBO)
The above file is in .xlsx format. You need the latest version of Microsoft Excel to explore it.

The Concept 

A leveraged buyout (or LBO, or highly leveraged transaction (HLT), or "bootstrap" transaction) occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage (borrowing). The assets of the acquired company are used as collateral for the borrowed capital, sometimes with assets of the acquiring company. Typically, leveraged buyout uses a combination of various debt instruments from bank and debt capital markets. The bonds or other paper issued for leveraged buyouts are commonly considered not to be investment grade because of the significant risks involved.Companies of all sizes and industries have been the target of leveraged buyout transactions, although because of the importance of debt and the ability of the acquired firm to make regular loan payments after the completion of a leveraged buyout, some features of potential target firms make for more attractive leverage buyout candidates, including:

a.  Low existing debt loads;

b.  A multi-year history of stable and recurring cash flows;

c. Hard assets (property, plant and equipment, inventory, receivables) that may be used as collateral for   lower cost secured debt;

d. The potential for new management to make operational or other improvements to the firm to boost cash flows;

e. Market conditions and perceptions that depress the valuation or stock price.

The above definition is extracted from Wikipedia.Com. The link is given inside my Financial Model.

The Model

In the one page Financial Model that I have created, you have to just change the assumptions of borrowing and growth in terms of sales and various types of expenses.You will be finally able to assess whether the LBO deal will be acceptable to (a) Equity Investors and (b) All Investors. The input and output area of the model is fully segregated. You can change data only in the input area, in the pink cells only. Please download the model and try yourself. This is in .xlsx file format. You need the latest version of Microsoft Excel to explore the model.

Click here to download my Financial Model on Leveraged Buy Out (LBO)

The above file is in .xlsx format. You need the latest version of Microsoft Excel to explore it.

Indian Rupee Format

Click on the link below to study my file.
Excel Macro for Indian Rupee Format

When you try to format any number in Excel Spreadsheet it is usually formatted as million. The commas are put after three digits, and again after another 3 digits. But in India we put the first comma after the three digits and then after next two digits, because we talk in terms of lacs. Ten lacs is equal to one million. If you need to put the comma in the place of lac, there is no direct formatting option. But there is a work around. You can do the same with a macro. The following is the code of the macro.
________________________________________________________

Sub lacs()
For Each c In Selection
Select Case Abs(c.Value)
Case Is < 100000
c.Cells.NumberFormat = "##,##0.00"
Case Is < 10000000
c.Cells.NumberFormat = "#\,##\,##0.00"
Case Is < 1000000000
c.Cells.NumberFormat = "#\,##\,##\,##0.00"
Case Is < 1000000000
c.Cells.NumberFormat = "#\,##\,##\,##0.00"
Case Is < 100000000000#
c.Cells.NumberFormat = "#\,##\,##\,##\,##0.00"
Case Else
c.Cells.NumberFormat = "#\,##\,##\,##\,##\,##0.00"
End Select
Next c
End Sub

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Then you attach this macro to a button, and use this button to format any cell in Indian Rupee Format as needed by you.

Click on the link below to study my file.

Excel Macro for Indian Rupee Format