Equity Ventures Limited MBO Valuation Model   Project: Sample   Date: Time:  
         
DEAL         PROFIT & LOSS A/C       CASHFLOW      
Price/Value For 100% of Target     Yr 1 Yr 2 Yr 3     Yr 1 Yr 2 Yr 3  
Net debt Re-finance debt (cash)   Year end: 2011 2012 2013     2011 2012 2013  
Fees Paid at completion   Sales          
TOTAL Total funding required             EBITDA  
        EBITDA   Other P&L  
Funded:   Base Variation   Depreciation   Capex (-)  
    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 2011 2012 2013   Int: VC  
  2011 2012 2013   Sales growth   Divs: Pref  
Bank/OD   EBITDA margin   Divs: Ords  
VC int   EBITDA cover   NetFlow  
Pref div   Cash cover  
Tax rate   Debtor days   Copyright 2010: 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 an 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 2011 2012 2013  
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  
Entry PE (deal total/EBITDA )   Trade Crs 0   Trade Crs  
Entry PE (based on Yr 1 EBITDA)   Other Crs 0   Other Crs  
Entry Bank risk to last 12m EBITDA   Tax due 0   Tax due  
Entry Bank risk to Yr 1  EBITDA   NTA 0   NTA  
Exit PE (base case Yr 3 EBITDA)   Goodwill 0 0   Goodwill  
NTA less net debt - pre-deal   Total 0   Total  
VC multiple of investment on exit          
Management multiple on exit   Ord Shares 0   Ord Shares  
VC multiple on variation   P/L a/c 0   P/L a/c  
Management multiple on variation   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       2010 2011 2012 2013  
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.  
Example: change the P/E of 6.0 to 7.0 under Variation; press Calculate and see the changes to IRR and value to management.  
For help with MBO and venture capital funding contact David Tallboys on 0207 665 6611  
 

Powered By SpreadsheetConverter