Financial Metrics and Projections
CASH FLOW FOR ACQUISITIONS
.
Operating Cash Flow
•
•
Operating cash flow should only include the movement in the original assets/liabilities and amortization of
purchase price accounting from the date of acquisition to the close of the period. It does not include the value of
of the original assets/liabilities. The cash outflow for the net assets acquired is an investing cash outflow.
Example:
Ending Balance Trade A/P
- Beginning Balance Trade A/P
Acquired Trade A/P
+/- FX Impact
+/- Increase/Decrease in Trade A/P for Fixed Assets
Increase/Decrease in Cash from Changes in Trade A/P
Includes interest payments, including payments for ticking fees.
Investing Cash Flow
.
Includes the fair value of cash consideration less the acquired net assets and extinguishment of certain
obligations, net of cash acquired.
Financing Cash Flow
•
COHERENT
Includes the gross proceeds of the acquisition financing, including the Term A and Term B facilities and issuance
of Series B Preferred Shares used to finance the acquisition, net of payments on existing debt.
Also includes the cash outflow for the debt issuance costs and equity issuance costs associated with the above.
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