Chapters Model with Leveraged Buyout LBO Analysis

Description
This model lacks synergies from the LBO, however it includes projections, debt schedules, working capital schedules, depreciation schedules as well as a model for leverage buyouts and valuation.

Many comments do exist explaining major assumptions on how the numbers have been derived. I encourage you to play along with those numbers so that you can understand the relationships in the model work for valuation purposes.

Disclaimer:

While the numbers look "good" (valuations are in the 20's and IDG:Indigo is trading at around $19) the information within the model has no warranty as a strictly academic exercise only. t would be risky (as well as foolish and reckless) to trade on this information (beyond the standard business risk).

I am not accountable if the user decides to use the model for trading or other investment decisions. Do consult a qualified financial adviser before you make any investment decisions.

Information for this model is based on the 2009 Chapters / Indigo Annual Report.

Do note that:

The spreadsheet contains circular references in order to calculate exact insterest expense itiretively (using real cash gains from reduced interest expense to further reduce interest expense). This can be done in Excel if you wish to allow circular references, by changing your settings.

- Joshua Wong, amgstr.blogspot.com, 2009