Best In Class

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Not to long ago we poked fun at a certain fast-food business journal (I know, people who live in glass houses and all that) and, in particular, one article about the Freescale buyout. Today, The Deal gives the "best exam" answer to our little reader quiz and takes to task the original author.
Of course, our readers hit the nail on the head. (Eventually).

Dig just a few pages into Freescale's recent 10-K (on page 38), and you find that it had $1.525 billion in adjusted Ebitda last year. (The adjustment includes that $891 million in noncash charges related to "purchase accounting adjustments.")
Cash interest expense was just $760 million, and cap ex was $327 million. That left $442 million in free cash flow, after interest, cap ex and R&D. Freescale ended 2007 with slightly more cash on its balance sheet than it had a year earlier: $751 million versus $710 million.

When A Buyout Writer Goes Bad

BusinessWeek's unnecessary bashing of the Freescale buyout
[The Deal]

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