Many liquidation models use a top-down approach to calculate outcomes for all stakeholders. In Part A and Part B of this series, we reviewed two top-down style liquidation models. They can work very well. But in some situations when many…
In Part A of our liquidation model series we walked through the basic setup of an example liquidation model and discussed how to evolve model sophistication over time. Now in Part B we expand upon that initial model to incorporate…
Liquidation models are a tool that business owners and investors alike can use to evaluate a company’s capitalization structure in preparation for raising capital from investors, comparing investment opportunities, and incentivizing employees. In this series of articles we will discuss…
Many corporate finance models that model how a single company’s balance sheet changes over time use DSO (days sales outstanding) as an input assumption. So as an input assumption it drives pro forma A/R (accounts receivable) levels and period-over-period cash…