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Learn/Accounting for buyers
LearnAccounting for buyers

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B Basic

  • The statements as a buyer reads them9m
  • Cash conversion and capexPro9m
  • Net working capital and why buyers carePro8m

A Advanced

  • Quality of earnings and adjusted EBITDAPro11m
  • The working capital peg and price adjustmentsPro10m
  • Net debt and debt-like itemsPro11m
  • Purchase accounting in an LBOPro12m
  • FlashcardsPro0/15
  • Basic quizPro80% passes
  • Advanced quizPro80% passes
  • Terms

Cash conversion and capex

Two businesses at the same EBITDA and the same price can repay very different amounts of debt. The gap is capex, and the split between maintenance and growth capex is where sellers stretch.

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