Add your custom HTML here Equity Ventures MBO What is your company worth? Project: MBO Date: 04-Feb Time: 15:08 DEAL PROFIT & LOSS A/C CASHFLOW Price/value: 3,000 Valuation now Yr 1 Yr 2 Yr 3 Yr 1 Yr 2 Yr 3 Add: debt 1,600 Existing borrowings Year end: 2026 2027 2028 2026 2027 2028 Deal costs 400 Estimate Sales 6,000 8,000 10,000 TOTAL 5,000 MBO Funds required EBITDA 650 900 1,250 EBITDA 650 900 1,250 OtherP&L 0 0 0 Funded: Base Variation Depreciation -50 -50 -50 Capex (-) -200 -50 -50 Shares: Equity Equity Other P&L 0 0 0 Stocks -50 -100 -100 Ords-Mgt 100 40.0% 40.0% Int:O/D -25 -12 -11 Debtors 50 -150 -100 Ords-VC 150 60.0% 60.0% Int: Bank -100 -100 -88 Creditors 80 100 20 All Ords 250 100.0% 100.0% Int: VC 0 -90 -90 Other Cr. -50 20 20 Prefs-VC 1,250 PBT 475 648 1,012 Tax paid -100 -143 -194 VC loan 1,000 Tax -143 -194 -303 Cash 380 578 846 Bank loan 2,000 Pref Div VC 0 -100 -100 Int:O/D -25 -12 -11 Overdraft 500 Ord Div VC 0 0 0 Int:term -100 -100 -88 TOTAL 5,000 Profit ret 333 353 608 Bank 0 -250 -500 Free Cash 255 215 247 RATES Yr 1 Yr 2 Yr 3 RATIOS 2026 2027 2028 Int: VC 0 -90 -90 2026 2027 2028 Sales growth 9% 33% 25% Divs: Pref 0 -100 -100 Bank/OD 5.00% 5.00% 5.00% EBITDA % 10.8% 11.3% 12.5% Divs: Ords 0 0 0 VC int 0.00% 9.00% 9.00% EBITDA cover 5.2 8.0 12.7 NetFlow 255 25 57 Pref div 0.00% 8.00% 8.00% Cash cover 3.0 1.6 1.4 Tax rate 30.00% 30.00% 30.00% Debtor days 58 50 44 Copyright: Equity Ventures Limited Call Equity Ventures 0207 859 4106 Web: www.equityventures.co.uk Email: David.Tallboys@equityventures.co.uk DEAL and EXIT RATIOS BALANCE SHEETS Yr 1 Yr 2 Yr 3 Last 12 months sales pre-deal 5,500 Before Deal Pro-forma MBO 2026 2027 2028 Last 12 m EBITDA pre-deal 600 F.Assets 1,000 0 1,000 F.Assets 1,150 1,150 1,150 Last 12m EBITDA % 10.9% Stock 800 0 800 Stock 850 950 1,050 Deal total (price + debt + fees) 5,000 Debtors 1,000 0 1,000 Debtors 950 1,100 1,200 Deal PE (deal total/EBITDA ) 8.3 Trade Crs -800 0 -800 Creditors -880 -980 -1,000 Deal PE (based Yr 1 EBITDA) 7.7 Other Crs -100 0 -100 Other -50 -70 -90 Bank risk/EBITDA 4.2 Tax due -100 0 -100 Tax due -143 -194 -303 Bank risk to Yr1 EBITDA 3.8 NTA 1,800 0 1,800 NTA 1,878 1,956 2,007 Exit PE (Yr 3 EBITDA) 6.0 Goodwill 0 0 3,200 Goodwill 3,200 3,200 3,200 NTA less net debt - pre-deal 200 Total 1,800 0 5,000 Total 5,078 5,156 5,207 VC cash multiple 2.1 Management multiple on exit 15.3 Ord Shares 0 250 250 Ord Shares 250 250 250 VC multiple (var) 2.1 P/L a/c 0 0 0 P/L a/c 333 686 1,294 Management multiple (var) 15.3 Pref shares 0 1,250 1,250 Pref shares 1,250 1,250 1,250 VC loan 0 1,000 1,000 VC loan 1,000 1,000 1,000 Bank loan 0 2,000 2,000 Bank loan 2,000 1,750 1,250 EXIT VALUATION OF SHARES ON EXIT Overdraft 0 500 500 O/D/(cash) 245 220 163 Total 0 5,000 5,000 Total 5,078 5,156 5,207 roundings 0 0 0 Exit at end of year 3 Base Variation EBITDA (year 3) 1,250 1,250 VC CASHFLOW & IRR Year: 2026 2027 2028 Exit multiple of EBITDA 6.0 6.0 Ordinary Shares -150 Value of company 7,500 7,500 Ordinary dividends 0 0 0 0 Less:Bank loan -1,250 -1,250 Preference Shares -1,250 Net (O/D)/Cash -163 -163 VC loan -1,000 Less: VC loan repaid -1,000 -1,000 Pref dividends 0 100 100 Value of equity 5,087 5,087 Prefs redeemed 1.0 x 1,250 Less: Prefs-VC -1,250 -1,250 Loan interest 0 90 90 Value of Ords 3,837 3,837 VC loan repaid 1.0 x 1,000 Management's ords 1,535 1,535 Ords value on exit 2,302 VC's ords value 2,302 2,302 Base case IRR & cash flow 27.6% -2,400 0 190 4,742 Value of Ords 3,837 3,837 Variation IRR & cash flow 27.6% -2,400 0 190 4,742 What to do: replace the blue variables with figures for the company you are looking at. Press calculate. Note changes. This is only indicative: call Equity Ventures for help with a real deal. David.Tallboys@equityventures.co.uk Contact: Equity Ventures.0207 859 4106 www.equityventures.co.uk Powered By SpreadsheetConverter