At 20x entry, a 60:40 split implies 12x debt, which no lender will fund? Does the debt percentage simply fall away debt stays at 5–7x and equity absorbs the rest?
How do we make assumptions for different tranches of debt for LBO model and how do we arrive at the spilt between equity and debt quantum
The company is publicly listed. The deliverables shared included a pitch deck covering the business overview, investment thesis, market overview, competitor landscape, and financial snapshot.
An Excel model was also shared, which included a full five-year projection, valuation analysis using DCF and trading comps and txn comps, and valuation ranges presented through a football field analysis
Cross questions they can ask
Would really appreciate any resources, PDFs, guides, or pointers. Thanks in advance!
Interview has 2 rounds
The company does not manufacture full wind turbines. It supplies products/solutions such as:
power and control systems, cooling systems, condition monitoring systems, electrical spare parts, repair/refurbishment services, field services and aftermarket support
How would you think about making projected 3 statements for this for this kind of business?
Would you split it by:
OEM / new turbine installation revenue vs aftermarket/service revenue?
Product categories such as controls, cooling, monitoring, spares, and services?
Installed base / turbine fleet under service?
MW/GW of new wind installations?
Any public company that would have similar kind of model