Debt Capacity Sizer LTM EBITDA ($) Assumed Interest Rate (%) Minimum DSCR (e.g., 1.5) Size Debt What is Debt Capacity? In the world of Leveraged Finance (LevFin) and Private Equity, debt is the fuel that makes deals happen. But a company can’t just borrow infinite money. Debt capacity is the maximum amount of debt a … Read more
Unlevered / Relevered Beta Calculator Current Levered Beta Current Debt/Equity Ratio (%) Marginal Tax Rate (%) Target Debt/Equity Ratio (%) Calculate Betas When bankers are building a Discounted Cash Flow (DCF) model, they need to calculate the Weighted Average Cost of Capital (WACC). To get WACC, you need the Cost of Equity. To get the … Read more
Treasury Stock Method Calculator Basic Shares Outstanding Current Share Price ($) Total Options Outstanding Average Strike Price ($) Calculate Diluted Shares In plain English, the Treasury Stock Method (TSM) is how finance professionals figure out exactly how many shares a company actually has if everyone who held options suddenly decided to cash them in. Think … Read more
Standard Lehman Formula Calculator Transaction Size / Enterprise Value ($) Calculate Advisory Fee The Art of Getting Paid in M&A When an investment bank pitches a client to sell their company, they don’t just do it for fun. They do it for the advisory fee. But in M&A, bankers rarely charge a flat rate or … Read more