Equity Ventures Limited MBO Valuation Model   Project: MBO2012   Date: Time:  
         
DEAL         PROFIT & LOSS A/C       CASHFLOW      
Price: For 100%     Yr 1 Yr 2 Yr 3     Yr 1 Yr 2 Yr 3  
Add: debt       Year end: 2013 2014 2015     2013 2014 2015  
Deal costs       Sales          
TOTAL Funding required             EBITDA  
        EBITDA   Other P&L  
Funded:   Base Variation   Depreciation   Capex (-)  
Shares:   Equity Equity   Other P&L   Stocks  
Ords-Mgt   Int:O/D   Debtors  
Ords-VC   Int: Bank   Creditors  
Total Ords   Int: VC   Other Crs.  
Prefs-VC       PBT   Tax paid  
VC loan       Tax   Cash  
Bank loan       Pref Div - VC   Int:O/D  
Overdraft       Ord Div - VC   Int:term  
TOTAL       Profit ret'd   Bank loan  
                Free Cash  
RATES Yr 1 Yr 2 Yr 3   RATIOS 2013 2014 2015   Int: VC  
  2013 2014 2015   Sales growth   Divs: Pref  
Bank/OD   EBITDA margin   Divs: Ords  
VC int   EBITDA cover   NetFlow  
Pref div   Cash cover  
Tax rate   Debtor days   Copyright 2012: Equity Ventures Limited  
 
Equity Ventures Limited, 23 Berkeley Square, London, W1J 6HE. Tel: 0207 665 6611   Web: www.equityventures.co.uk  
Contact David Tallboys for help with arranging a management buyout (MBO)     Email: david@equityventures.co.uk  
 
DEAL, EBITDA and EXIT RATIOS     BALANCE SHEETS         Yr 1 Yr 2 Yr 3  
Last 12 months sales pre-deal     Pre-deal Deal Pro-forma Post deal 2013 2014 2015  
Last 12 months EBITDA pre-deal   F.Assets 0   F.Assets  
Last 12m EBITDA %     Stock 0   Stock  
Deal total (price + debt + fees)   Debtors 0   Debtors  
Deal PE (deal total/EBITDA )   Trade Crs 0   Trade Crs  
Deal PE (based on Yr 1 EBITDA)   Other Crs 0   Other Crs  
Deal bank risk/EBITDA     Tax due 0   Tax due  
Deal bank risk to Yr 1  EBITDA   NTA 0   NTA  
Exit PE (Yr 3 EBITDA)     Goodwill 0 0   Goodwill  
NTA less net debt - pre-deal   Total 0   Total  
VC cash multiple            
Management multiple on exit   Ord Shares 0   Ord Shares  
VC multiple  (var)     P/L a/c 0 0 0   P/L a/c  
Management multiple (var)   Pref shares 0   Pref shares  
  VC loan 0   VC loan  
  Bank loan 0   Bank loan  
EXIT VALUATION OF ORDINARY SHARES   Overdraft 0   O/D/(cash)  
        Total 0   Total  
                  roundings  
Exit at end of year 3 Base Variation  
EBITDA (year 3)   VC CASHFLOWS & IRR       2012 2013 2014 2015  
P/E multiple of EBITDA     Ordinary Shares        
Value of company     Ordinary dividends   0  
Less:Bank loan     Preference Shares          
Net (O/D)/Cash     VC loan              
Less: VC loan repaid     Pref dividends    
Value of equity     Prefs redeemed x    
Less: Prefs-VC     Loan interest    
Value of Ords     VC loan repaid x    
Management's ords     Ords value on exit          
VC's ords value   Base case IRR & cash flows    
Value of Ords   Variation IRR & cash flows    
 
See the effect of changing the blue financial variables on the exit value and IRR.  Then replace the variables with those for your company.  
For example: change the P/E of 6.0 to 7.0 under Variation; press Calculate and see the difference from the base case  
For help with MBO and venture capital funding contact David Tallboys on 0207 665 6611  
Equity Ventures arranges and invests in MBOs. We do not charge fees to MBO management teams, so feel free to call us.  

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