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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