This model shows you how to structure a buyout
Equity Ventures Limited
-
MBO Valuation Model 2015
Project:
Date:
Time:
DEAL
PROFIT & LOSS A/C
CASH
Price
for 100% of Target
Yr 1
Yr 2
Yr 3
Yr 1
Yr 2
Yr 3
Net debt
re-finance debt
Year end:
2016
2017
2018
2016
2017
2018
Fees
Sales
PBIT
TOTAL
funding required
PBIT
Other P&L
Other P&L
Depn
Sources:
Base
Variation
Int:O/D
Capex (-)
Equity
Equity
Int: Bank
Stocks
Ords-Mgt
Int: VC
Debtors
Ords-VC
PBT
Creditors
Ords
Tax
Other Crs.
Prefs-VC
Pref Div - VC
Tax paid
VC loan
subordinated to bank
Ord Div - VC
CashFADS
Bank loan
Profit ret'd
Int:O/D
Overdraft
at completion
Int:term
Funded:
RATIOS
Yr 1
Yr 2
Yr 3
2016
2017
2018
Free Cash
RATES
Yr 1
Yr 2
Yr 3
PBIT margin
Int: VC
2016
2017
2018
PBIT/Bank/OD
Divs: Pref
Bank/OD
C/F ADS Bank
Divs: Ords
VC int
Stock days
Net
Flow
Pref div
Debtor days
Tax rate
Creditor days
Copyright 2015:
Equity Ventures Limited
For help and advice in fundraising and structuring an MBO call Equity Ventures.
Internet:
www.equityventures.co.uk
Equity Ventures Limited
Tel: 0207 859 4106
Email:
david@equityventures.co.uk
DEAL & P/E RATIOS
BALANCE SHEETS
Yr 1
Yr 2
Yr 3
Last 12 months sales pre-deal
Pre-deal
Deal
Opening
Post deal
2016
2017
2018
Last 12 months PBIT pre-deal
F.Assets
0
F.Assets
Last 12m PBIT %
Stock
0
Stock
Deal price (price + debt + fees)
Debtors
0
Debtors
Entry PE (deal price/PBIT taxed)
Trade
Crs
0
Trade Crs
Entry PE (based on Yr 1 PBIT)
Other Crs
0
Other Crs
Exit PE (base case Yr 3 PBIT)
Tax due
0
Tax due
Net assets less net debt
NTA
NTA
VC multiple of inv. on base
Goodwill
Goodwill
Management multiple on base
Total
Total
VC multiple of inv. on variation
Management multiple on variation
Ord Shares
Ord Shares
Cash:PBIT ratio on variation
(x)
P/L a/c
0
P/L a/c
Pref shares
Pref shares
VC loan
VC loan
EXIT VALUATION OF ORDINARY SHARES
Bank loan
Bank loan
Overdraft
O/D/(cash)
Exit at end of year 3
Base
Variation
Total
Total
PBIT (yr3: 2018)
Op. Assets
roundings
Tax
Profit after tax
VC CASHFLOWS & IRR
2015
2016
2017
2018
P/E multiple
Ordinary Shares
Value of company
Ord share dividends
Less: Bank loan
Preference Shares
Net (O/D)/Cash
VC loan
Less: VC loan
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
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