CAPEX on Acquisitions in 3 Statement Models
Hi everyone,
I have been building a new valuation model but I incurred in a sort of dilemma. Previously, I would embed all fixed operating assets within the same group (tangibles and intangibles altogether, while other assets on a separate group and projected their current carrying value in the future without increasing them) and the same for D&A and all kind of CAPEX. Right now I need to separate the forecast for tangibles and intangibles, therefore I need to increase them over time using their own CAPEX/Revenue ratios and decrease them with their own D&A/Beginning Assets ratios. Until here there is no problem, just more hardcodes. The issue arises when a company consistently allocates capital to acquisitions and that CAPEX needs to be properly projected in the case we want to estimate a reliable future FCFF. My question is how am I supposed to balance acquisitions in a 3 statement model? The cash paid for acquisitions can indeed increase the value of non-current assets, current assets, non-current liabilities, and current liabilities. Do you have any advice?
Quos ut repudiandae maxime eos molestias optio deleniti et. Sapiente nesciunt hic dolorem non neque.
Consequuntur asperiores omnis consequuntur harum molestiae. Consectetur quos qui cumque veniam.
Tenetur maiores quia sapiente rem consequatur fugiat. Quis qui blanditiis et incidunt deserunt molestiae quasi ab. Voluptatibus pariatur et dolores exercitationem nihil. Et nesciunt ad nostrum velit illum dolorum. Commodi dicta rerum labore in perferendis. Rerum at enim ipsa ex.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...