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Module I· Consolidation & Equity MethodAdvanced
Question

How do you model intercompany loans and their effects?

Answer

Consolidated intercompany loans eliminate. In carve-outs and standalone models, they can become real debt, equity contributions, or purchase-price adjustments.

Deep diveShow more details

Check whether historical interest is market-rate. A below-market group loan may create a standalone EBITDA / cash-flow adjustment after refinancing.

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