Market Verticals and Megatrends
CASH FLOW - ACQUISITION CONSIDERATIONS
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Operating Cash Flow
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Increase/decrease in cash from changes in operating assets/liabilities should be considered net of the effects of
the acquisition. The cash outflow for the net assets acquired is considered 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
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Includes the fair value of cash consideration paid for the acquired net assets and extinguishment of certain
obligations, net of cash acquired.
Financing Cash Flow
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Includes the gross proceeds from 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.
COHERENT
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