BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com
Private Equity Buy-side Valuation Model
Target Company Acquisition Pricing
To use this valuation model type in data in the fields with blue text and numbers
Table of Contents
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Summary Table * Income Statement * Balance Sheet * Cashflow Statement * Profitability Ratios * Liquidity Ratios * Financing Cap Table Key Financing Assumptions (Assump-F) Acquisition Terms Acquisition Capital Structure Cost of Capital Leveraged Debt Financing Terms Taxation Currency & Interest Assumption Future Financing Assumptions Entry Valuation Exit Market Valuation Key Operating Assumptions (Assump-O) Upside Cas Base Case Downside Case Income Statement (P&L) Balance Sheet (BS) Cashflow Statement (CFS) Capex & Depreciation (Depr) Intangibles Schedule (Amort) Debt Schedule (Debt) 5-Year Free Cashflow Analysis (DCF) IRR Analysis (IRR) Valuation Using Comparable (Comparables) Valuation Using VC Method (VC Method) Control Page - General Model Information (Controls)
BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com
Upside Case
Projected Fiscal Year Ending March 31,
(USD$ in thousands, Except per Share Data) Income Statement Revenues Gross Profit EBITDA EBIT Net Income Balance Sheet Total Assets Current Liabilities Debt Total Liabilities Total Equity Cashflow Cash Inflow/(Outflow) from Operation Cash Inflow/(Outflow) from Investing Cash Inflow/(Outflow) from Financing Net Cash Inflow/(Outflow) Opening Cash Balance Closing Cash Balance Inc. (Dec.) in Net Working Capital Capital Expenditures Free Cash Flow 2000 $45,000 $15,000 $4,650 $2,743 $2,243 $16,507 $4,845 $5,000 $9,845 $6,662 2001 $65,000 $30,000 $15,050 $11,479 $6,250 $38,171 $14,474 $5,000 $19,474 $18,697 2002 $71,500 $39,325 $22,165 $13,199 $10,668 $62,493 $20,600 $5,000 $25,600 $36,893 $20,297 ($19,050) $7,528 $8,775 $2,500 $11,275 $664 $19,050 $1,247 2003 $80,080 $45,646 $25,626 $13,341 $10,915 $75,551 $22,743 $5,000 $27,743 $47,808 $23,146 ($7,500) $0 $15,646 $11,275 $26,921 ($53) $7,500 $15,646 2004 $89,690 $52,917 $30,494 $16,350 $13,472 $91,384 $25,104 $5,000 $30,104 $61,280 $27,565 ($7,950) $0 $19,615 $26,921 $46,536 ($52) $7,950 $19,615 2005 $100,452 $60,271 $35,158 $25,433 $21,193 $115,384 $27,910 $5,000 $32,910 $82,474 $30,828 ($8,800) $0 $22,028 $46,536 $68,564 ($91) $8,800 $22,028 2006 $112,507 $67,504 $39,377 $29,684 $24,806 $143,539 $31,259 $5,000 $36,259 $107,280 $34,357 ($10,000) $0 $24,357 $68,564 $92,921 ($143) $10,000 $24,357
Projected Fiscal Year Ending March 31, Key Financial Ratios
Profitability Revenue Growth Gross Margin EBITDA Margin EBIT Margin Net Income Margin EBIT / Total Assets [pre-tax ROA] EBIT (1-Tax) / Total Assets [ROA] Net Income / Book Value of Equity [ROE] Liquidity Current Ratio Quick Ratio Days Sales in Receivables Days COGS in Payables Days COGS in Inventory Financing Total Debt / Total Capitalization EBITDA / Net Interest EBIT / Net Interest (EBITDA - CapEx) / Net Interest Net Debt / Net Capitalization Net Debt / EBITDA 2000 NA 33.3% 10.3% 6.1% 6.1% 16.6% --2.4 0.6 7.3 30.4 29.7 0.3x 9.3x 5.5x 9.3x 0.3x 2.1x 2001 44.4% 46.2% 23.2% 17.7% 17.7% 30.1% 17.1% 33.4% 1.3 0.3 9.6 31.3 66.9 0.1x 30.1x 23.0x 30.1x 0.1x 1.3x 2002 10.0% 55.0% 31.0% 18.5% 18.5% 21.1% 17.7% 28.9% 1.6 0.6 10.0 75.0 90.0 0.1x 44.3x 26.4x 6.2x NA NA 2003 12.0% 57.0% 32.0% 16.7% 16.7% 17.7% 15.0% 22.8% 2.2 1.3 10.0 75.0 90.0 0.1x 51.3x 26.7x 36.3x NA NA 2004 12.0% 59.0% 34.0% 18.2% 18.2% 17.9% 15.2% 22.0% 2.9 2.0 10.0 75.0 90.0 0.1x 61.0x 32.7x 45.1x NA NA 2005 12.0% 60.0% 35.0% 25.3% 25.3% 22.0% 18.7% 25.7% 3.5 2.6 10.0 75.0 90.0 0.0x 70.3x 50.9x 52.7x NA NA 2006 12.0% 60.0% 35.0% 26.4% 26.4% 20.7% 17.6% 23.1% 4.0 3.1 10.0 75.0 90.0 0.0x 78.8x 59.4x 58.8x NA NA
BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com Company ABC Cap Table
Existing Shareholders '000 of shares % Shareholding % Shareholding Amount Raised Date (Pre) (Post) $'000 29.9% 21.2% 10.6% 31.9% 6.4% 100.0% 24.9% 17.7% 8.9% 26.6% 5.3% 83.3% Equity Valuation (Post) $'000
A B C D E
1,406 1000 500 1500 300 4,706
2,000
31/03/1995
2,000
New shareholders Co-investor X
941 0 941 5,647
16.7% 0.0% 16.7% 100.0%
7,528 31/03/2001
45,176
BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com Company ABC Key Financial Assumptions Upside Case
(USD$ in thousands, Except per Share Data) Acquisition Terms Shares to be Acquired Primary Secondary Number of Shares ('000) 941 0 Price per Share 8.00 Cost of Shares 7,528 0 Common Shares Outstanding (post) 5,647 Acquisition Stake 16.66% Acquisition Price 7,528 Transaction Fees 0 Assumed Liabilities (Existing Debt) 0 Total Acquisition Cost 7,528 Acquisition Capital Structure Equity Investment Leveraged Debt Total Leverage (Debt / Equity) Cost of Capital Industry Beta (unlevered) Risk Free Rate (10 year Treasury Bond) Equity Risk Premium Cost of Equity Debt-to-Capitalization Equity-to-Capitalization WACC Adjust for illiquidity/small company Adjusted WACC 0.80 7.0% 7.50% 13.00% 15.0% 85.0% 12.0% 15.0% 27.0% 100.00% 0.00% 100.00% 7,528 0 7,528 0.00
Leveraged Debt Financing Terms Leveraged Debt Amount Maturity (years) Repayment (0 Bullet / 1 Amortizing) Prepayment Penalty Base Rate 10 years Treasury Bond Spread Interest Rate Arrangement Fee Taxation Corporate Tax Rate (average, effective) Withholding Tax Rate (if applicable) Currency & Interest Rate Assumption Base Currency Long Term 10 year Treasury Bond Long Term Credit Spread Long Term Discount Rate Future Financing Assumption % financed by new debt % by new equity 15% 85% USD$ 7.00% 1.00% 8.00% 19.85% 0.00% 0 0 1 None 7.00% 3.00% 10.00% 0.0
Entry Valuation Valuation (Acquisition Price / Stake) 45,176 Current Year Prospective Price to Earnings 7.23 4.23 Price to EBITDA 3.00 2.04 Price to Sales Revenue 0.70 0.63 Price to Book Value 2.42 1.22 Price per Customer N/A N/A Exit Market Valuation Price to Earnings Price to EBITDA Price to Sales Revenue Price to Book Value Price per Customer 10.00 5.00 1.00 n.a. n.a.
Company ABC Key Operating Assumptions ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com BUY THE Upside Case
Projected Fiscal Year Ending March 31,
(USD$ in thousands, Except per Share Data) Revenue Growth Rate - Product A COGS (excl. Deprec.) / Revenue - Product A SG&A / Revenue Other Operating Exp / Revenue Minority % Interest in Total Income Effective Tax Rate Days Sales in Receivables Days COGS in Inventory Other Current Assets / Revenues Days COGS in Payables Other Current Liabilities / Revenues Increase in Other Long-Term Assets Increase in Other Long-Term Liabilities 1 Upside Case (1=Base Case, 2=Upside Case, 3=Downside Case) ### -### ### ### ### ### ### ### ### ### ### --2000 -66.7% 8.0% 15.0% 0.0% -7.3 29.7 13.3% 30.4 5.2% $0.0 0.0 2001 44.4% 53.8% 8.0% 15.0% 0.0% 43.1% 9.6 66.9 12.3% 31.3 17.7% $0.0 0.0 2002 10.0% 45.0% 10.0% 14.0% 0.0% 16.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2003 12.0% 43.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2004 12.0% 41.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2005 12.0% 40.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2006 12.0% 40.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0
Projected Year Ending December 31, Upside Case
Revenue Growth Rate - Product A COGS (excl. Deprec.) / Revenue - Product A SG&A / Revenue Other Operating Exp. (Inc.) / Revenues Minority % Interest in Total Income Effective Tax Rate Days Sales in Receivables Days COGS in Inventory Other Current Assets / Revenues Days COGS in Payables Other Current Liabilities / Revenues Increase in Other Long-Term Assets Increase in Other Long-Term Liabilities ### -### ### ### ### ### ### ### ### ### ### --2000 -66.7% 8.0% 15.0% 0.0% -7.3 29.7 13.3% 30.4 5.2% $0.0 0.0 2001 44.4% 53.8% 8.0% 15.0% 0.0% 43.1% 9.6 66.9 12.3% 31.3 17.7% $0.0 0.0 2002 10.0% 45.0% 10.0% 14.0% 0.0% 16.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2003 12.0% 43.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2004 12.0% 41.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2005 12.0% 40.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2006 12.0% 40.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0
Projected Year Ending December 31, Base Case
Revenue Growth Rate - Product A COGS (excl. Deprec.) / Revenue - Product A Revenue Growth Rate - Product A Other Operating Exp. (Inc.) / Revenues Minority % Interest in Total Income Effective Tax Rate Days Sales in Receivables Days COGS in Inventory Other Current Assets / Revenues Days COGS in Payables Other Current Liabilities / Revenues Increase in Other Long-Term Assets Increase in Other Long-Term Liabilities ### -### ### ### ### ### ### ### ### ### ### --2000 -66.7% 8.0% 15.0% 0.0% -7.3 29.7 13.3% 30.4 5.2% $0.0 0.0 2001 44.4% 53.8% 8.0% 15.0% 0.0% 43.1% 9.6 66.9 12.3% 31.3 17.7% $0.0 0.0 2002 10.0% 30.0% 10.0% 14.0% 0.0% 16.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2003 12.0% 27.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2004 12.0% 30.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2005 12.0% 30.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2006 12.0% 30.0% 11.0% 14.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0
Projected Year Ending December 31, Downside Case
Revenue Growth Rate - Product A COGS (excl. Deprec.) / Revenue - Product A Revenue Growth Rate - Product A Other Operating Exp. (Inc.) / Revenues Minority % Interest in Total Income Effective Tax Rate Days Sales in Receivables Days COGS in Inventory Other Current Assets / Revenues Days COGS in Payables Other Current Liabilities / Revenues Increase in Other Long-Term Assets Increase in Other Long-Term Liabilities ### -### ### ### ### ### ### ### ### ### ### --2000 -66.7% 8.0% 15.0% 0.0% -7.3 29.7 13.3% 30.4 5.2% $0.0 0.0 2001 44.4% 53.8% 8.0% 15.0% 0.0% 43.1% 9.6 66.9 12.3% 31.3 17.7% $0.0 0.0 2002 10.0% 60.0% 10.0% 15.0% 0.0% 16.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2003 5.0% 60.0% 12.0% 15.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2004 5.0% 65.0% 13.0% 15.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2005 5.0% 65.0% 14.0% 15.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0 2006 5.0% 65.0% 15.0% 15.0% 0.0% 15.0% 10.0 90.0 16.4% 75.0 19.6% $0.0 0.0
15/08/2007 * 4:41 PM
Company ABC Income Statement Upside Case
(USD$ in thousands, Except per Share Data)
BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com
Projected Fiscal Year Ending March 31,
2000 45,000.0 0.0 0.0 $45,000.0 $30,000.0 0.0 0.0 $30,000.0 $15,000.0 33.3% 3,600.0 6,750.0 $4,650.0 10.3% 1,907.1 0.0 $2,742.9 6.1% 0.0 500.0 $2,242.9 0.0 $2,242.9 0.0 $2,242.9 0.0 $2,242.9 0.0 $2,242.9 2001 65,000.0 0.0 0.0 $65,000.0 $35,000.0 0.0 0.0 $35,000.0 $30,000.0 46.2% 5,200.0 9,750.0 $15,050.0 23.2% 3,571.0 0.0 $11,479.0 17.7% 0.0 500.0 $10,979.0 4,729.4 $6,249.6 0.0 $6,249.6 0.0 $6,249.6 0.0 $6,249.6 2002 71,500.0 2003 80,080.0 2004 89,689.6 2005 100,452.4 2006 112,506.6
Revenue Product A Product B Product C Total Revenue COGS Product A Product B Product C Total COGS Gross Profit Gross Margin SG&A Others Operating Expenses EBITDA (Operating Cash Flow) EBITDA Margin Depreciation Amortization of Intangibles EBIT (Operating Income) EBIT (Operating) Margin Other Expenses (Income): Interest Income Interest Expense Pre-Tax Income Income Taxes Net Income Minority Interest in Net Income Adjusted Net Income Preferred Dividends Net Income to Common Extraordinary Charges (Income) Adjusted Net Income to Common
$71,500.0 $32,175.0
$80,080.0 $34,434.4
$89,689.6 $36,772.7
$100,452.4 $40,180.9
$112,506.6 $45,002.7
$32,175.0 $39,325.0 55.0% 7,150.0 10,010.0 $22,165.0 31.0% 8,965.5 0.0 $13,199.5 18.5% 0.0 500.0 $12,699.5 2,031.9 $10,667.6 0.0 $10,667.6 0.0 $10,667.6 0.0 $10,667.6
$34,434.4 $45,645.6 57.0% 8,808.8 11,211.2 $25,625.6 32.0% 12,284.3 0.0 $13,341.3 16.7% 0.0 500.0 $12,841.3 1,926.2 $10,915.1 0.0 $10,915.1 0.0 $10,915.1 0.0 $10,915.1
$36,772.7 $52,916.9 59.0% 9,865.9 12,556.5 $30,494.5 34.0% 14,144.5 0.0 $16,349.9 18.2% 0.0 500.0 $15,849.9 2,377.5 $13,472.5 0.0 $13,472.5 0.0 $13,472.5 0.0 $13,472.5
$40,180.9 $60,271.4 60.0% 11,049.8 14,063.3 $35,158.3 35.0% 9,725.0 0.0 $25,433.3 25.3% 0.0 500.0 $24,933.3 3,740.0 $21,193.3 0.0 $21,193.3 0.0 $21,193.3 0.0 $21,193.3
$45,002.7 $67,504.0 60.0% 12,375.7 15,750.9 $39,377.3 35.0% 9,693.8 0.0 $29,683.6 26.4% 0.0 500.0 $29,183.6 4,377.5 $24,806.0 0.0 $24,806.0 0.0 $24,806.0 0.0 $24,806.0
15/08/2007 * 4:41 PM
Company ABC Balance Sheet Upside Case
(USD$ in thousands, Except per Share Data)
BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com
Projected Fiscal Year Ending March 31,
2000 $2,157.2 901.0 2,442.6 0.0 6,000.0 11,501 5,006.2 0.0 0.0 16,507 $2,500.0 $0.0 2,345.2 4,845 0.0 5,000.0 5,000 ` 0.0 0.0 0.0 9,845 163.2 9,944.8 0.0 (3,446.2) 6,661.8 16,507.0 2001 $2,500.0 1,717.8 6,413.3 0.0 8,000.0 18,631 19,539.8 0.0 0.0 38,171 $3,000.0 $0.0 11,473.8 14,474 0.0 5,000.0 5,000 0.0 0.0 0.0 19,474 206.7 9,944.8 0.0 8,545.7 18,697.2 38,171.0 2002 $11,274.9 1,958.9 7,933.6 0.0 11,701.5 32,869 29,624.3 0.0 0.0 62,493 $6,611.3 $0.0 13,989.2 20,600 0.0 5,000.0 5,000 0.0 0.0 0.0 25,600 206.7 9,944.8 7,528.0 0.0 19,213.3 36,892.8 62,493.3 2003 $26,920.9 2,194.0 8,490.7 0.0 13,105.7 50,711 24,840.0 0.0 0.0 75,551 $7,075.6 $0.0 15,667.9 22,743 0.0 5,000.0 5,000 0.0 0.0 0.0 27,743 206.7 9,944.8 7,528.0 0.0 30,128.4 47,807.9 75,551.3 2004 $46,535.9 2,457.2 9,067.2 0.0 14,678.4 72,739 18,645.5 0.0 0.0 91,384 $7,556.0 $0.0 17,548.0 25,104 0.0 5,000.0 5,000 0.0 0.0 0.0 30,104 206.7 9,944.8 7,528.0 0.0 43,600.8 61,280.3 91,384.4 2005 $68,563.7 2,752.1 9,907.6 0.0 16,439.8 97,663 17,720.5 0.0 0.0 115,384 $8,256.4 $0.0 19,653.8 27,910 0.0 5,000.0 5,000 0.0 0.0 0.0 32,910 206.7 9,944.8 7,528.0 0.0 64,794.2 82,473.7 115,383.8 2006 $92,920.7 3,082.4 11,096.5 0.0 18,412.6 125,512 18,026.8 0.0 0.0 143,539 $9,247.1 $0.0 22,012.3 31,259 0.0 5,000.0 5,000 0.0 0.0 0.0 36,259 206.7 9,944.8 7,528.0 0.0 89,600.2 107,279.7 143,539.1
Cash and Equivalents Accounts Receivable Inventory Prepaid Expenses Other Current Assets Total Current Assets Net Property, Plant & Equipment Intangible Assets Other Long-Term Assets Total Assets Payables Deposits Received Other Current Liabilities Total Current Liabilities Term loan Other Debt Total Debt Deferred Taxes Minority Interest Other Long-Term Liabilities Total Liabilities Share Capital Share Premium Additional Equity Convertible Preferred Stock Common Stockholders' Equity Total Equity Total Liabilities & Equity
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Balance Check
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15/08/2007 * 4:41 PM
Company ABC Cash Flow Statement Upside Case
(USD$ in thousands, Except per Share Data)
BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com
Projected Fiscal Year Ending March 31,
1999 2000 2001 $6,249.6 3,571.0 0.0 0.0 -0.0 2002 2003 2004 2005 2006 2008 #REF! 0.0 0.0 #REF! 0.0 0.0 0.0 #REF! 0.0 0.0 0.0 0.0 2009 #REF! 0.0 0.0 #REF! 0.0 0.0 0.0 #REF! 0.0 0.0 0.0 0.0 2010 #REF! 0.0 0.0 #REF! 0.0 0.0 0.0 #REF! 0.0 0.0 0.0 0.0 2011 #REF! 0.0 0.0 #REF! 0.0 0.0 0.0 #REF! 0.0 0.0 0.0 0.0
Net Income to Common #REF! $2,242.9 Depreciation 0.0 1,907.1 Amortization of Intangibles 0.0 0.0 Non-Cash Interest Expense 0.0 0.0 Increase in Deferred Taxes --Minority Interest in Net Income 0.0 0.0 Gain on Disposal of Fixed Asset (from Other Non Op Inc.) Funds From Operations (Inc.) Dec. in Acct. Rec. (Inc.) Dec. in Inventory (Inc.) Dec. in Prepaid Expenses (Inc.) Dec. in Other Current Assets Inc. (Dec.) in Account Payables Inc. (Dec.) in Other Current Liabilities Inc. (Dec.) in Net Working Capital Cash Flow From Operations Capex Maintenance Capex Investments Proceeds from Disposals Free Cash Flow ST Debt Issuance (Repay.) Exist. Debt Issuance (Repay.) Debt Issuance (Repayments) Common Stock Dividends Convert. Preferred Issuance Equity (Reduction) Issuance Other Change in Cash and Equivalents Beginning Cash and Equivalents Ending Cash and Equivalents -0.0 -$0.0 0.0 -0.0 0.0 $0.0 0.0
$10,667.6 $10,915.1 $13,472.5 $21,193.3 $24,806.0 8,965.5 12,284.3 14,144.5 9,725.0 9,693.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 19,633 23,199 27,617 30,918 34,500 (241.1) (1,520.3) 0.0 (3,701.5) 3,611.3 2,515.4 664 20,297 (19,050.0) 0.0 0.0 0.0 1,247 0.0 0.0 0 0.0 0.0 7,528.0 0.0 8,775 2,500.0 11,275 (235.1) (557.1) 0.0 (1,404.2) 464.3 1,678.7 -53 23,146 (7,500.0) 0.0 0.0 0.0 15,646 0.0 0.0 0 0.0 0.0 0.0 0.0 15,646 11,274.9 26,921 (263.3) (576.6) 0.0 (1,572.7) 480.5 1,880.1 -52 27,565 (7,950.0) 0.0 0.0 0.0 19,615 0.0 0.0 0 0.0 0.0 0.0 0.0 19,615 26,920.9 46,536 (294.9) (840.4) 0.0 (1,761.4) 700.3 2,105.8 -91 30,828 (8,800.0) 0.0 0.0 0.0 22,028 0.0 0.0 0 0.0 0.0 0.0 0.0 22,028 46,535.9 68,564 (330.3) (1,188.9) 0.0 (1,972.8) 990.8 2,358.5 -143 34,357 (10,000.0) 0.0 0.0 0.0 24,357 0.0 0.0 0 0.0 0.0 0.0 0.0 24,357 68,563.7 92,921
#REF!
#REF!
#REF!
#REF!
0.0 #REF! 0.0 #REF! 0.0 #REF! 0.0 #REF!
0.0 #REF! 0.0 #REF! 0.0 #REF! 0.0 #REF!
0.0 #REF! 0.0 #REF! 0.0 #REF! 0.0 #REF!
0.0 #REF! 0.0 #REF! 0.0 #REF! 0.0 #REF!
-0.0 0.0 $0.0 2,157.2 2,500.0
Financing required Financed by debt Financed by equity
15% 85%
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
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Company ABC CapEx and Depreciation Schedule BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com Upside Case
Projected Fiscal Year Ending March 31,
(USD$ in thousands, Except per Share Data)
1999
2000
2001
2002 $19,539.8 19,050.0 (8,965.5) $29,624.3
2003 $29,624.3 7,500.0 (12,284.3) $24,840.0
2004 $24,840.0 7,950.0 (14,144.5) $18,645.5
2005 $18,645.5 8,800.0 (9,725.0) $17,720.5
2006 $17,720.5 10,000.0 (9,693.8) $18,026.8
2007
2008
Beginning Net PP&E Capital Expenditures Depreciation Ending Net PP&E
$19,539.8
$18,026.8 #VALUE! 0.0 #REF! #VALUE! #VALUE! #VALUE! #VALUE!
Capital Expenditures
Plant A Plant B Plant C Plant D Total Capital Expenditure Capital Expenditure / Total Revenues $500.0 $600.0 $1,000.0 $1,000.0 $3,100.0 6.89% $500.0 $600.0 $1,000.0 $1,000.0 $1,500.0 $1,550.0 $6,000.0 $10,000.0 $1,600.0 $1,700.0 $2,200.0 $2,000.0 $7,500.0 9.37% $1,700.0 $1,850.0 $2,400.0 $2,000.0 $7,950.0 8.86% $1,800.0 $2,000.0 $3,000.0 $2,000.0 $8,800.0 8.76% $2,500.0 $2,500.0 $3,000.0 $2,000.0 $10,000.0 8.89% $0.0 #REF!
$3,100.0 $19,050.0 4.77% 26.64%
Book Depreciation
Existing PP&E Life Times Declining Existing Net PP&E 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total Book Depreciation Expense 3.0 Years 1.0x $19,539.8 $19,050.0 7,500.0 7,950.0 8,800.0 10,000.0 0.0 0.0 0.0 0.0 0.0 Salvage Value Land / Non-Depreciable Item $6,584.3 $2,381.3 $0.0 0.0 $6,584.3 $4,762.5 $937.5 New CapEx Life Times Declining $6,513.3 $4,762.5 $1,875.0 $993.8 $0.0 $4,762.5 $1,875.0 $1,987.5 $1,100.0 4.0 Years 1.0x $0.0 $2,381.3 $1,875.0 $1,987.5 $2,200.0 $1,250.0 $0.0 $0.0 937.5 1,987.5 2,200.0 2,500.0 0.0 $0.0 $0.0 0.0 993.8 2,200.0 2,500.0 0.0 0.0
$8,965.5
$12,284.3
$14,144.5
$9,725.0
$9,693.8
Company ABC Intangibles Schedule Upside Case
(USD$ in thousands, Except per Share Data)
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Projected Fiscal Year Ending March 31,
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Book Amortization
Intangibles Intangible 2 Intangible 3 Intangible 4 Total Book Intangibles 0 Years 0 Years 0 Years 0 Years $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0
Amortization of Intangibles Amortization of Intangible 2 Amortization of Intangible 3 Amortization of Intangible 4 Total Book Amortization of Intangibles
Tax Amortization
Intangibles Intangible 2 Intangible 3 Intangible 4 Total Tax Intangibles 40 Years ($0 = Non Tax-Deductible) 0 Years 0 Years 0 Years $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 0.0 $0.0
Tax Amortization of Intangibles Tax Amortization of Intangible 2 Tax Amortization of Intangible 3 Tax Amortization of Intangible 4 Total Tax Deductible Amortization of Intangibles
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Projected Fiscal Year Ending March 31,
(Amounts in US$ 000s) NEW BORROWINGS A Opening balance Additions Repayments Ending balance Interest payment Total debt service (Interest+Principal) TERM LOAN B Opening balance Additions Repayments Ending balance Interest payment Total debt service (Interest+Principal) TERM LOAN C Opening balance Additions Repayments Ending balance Interest payment Total debt service (Interest+Principal) TOTAL Opening Balance Ending Balance 2002 $0 0 0 $0 $0 $0 $5,000 0 0 $5,000 $500 $500 $0 0 0 $0 0 $0 2003 $0 0 0 $0 $0 $0 $5,000 0 0 $5,000 $500 $500 $0 0 0 $0 0 $0 2004 $0 0 0 $0 $0 $0 $5,000 0 0 $5,000 $500 $500 $0 0 0 $0 0 $0 2005 $0 0 0 $0 $0 $0 $5,000 0 0 $5,000 $500 $500 $0 0 0 $0 0 $0 2006 $0 0 0 $0 $0 $0 $5,000 0 0 $5,000 $500 $500 $0 0 0 $0 0 $0 Effective interest rate
10.00%
10.00%
10.00%
$5,000 $5,000
$5,000 $5,000
$5,000 $5,000
$5,000 $5,000
$5,000 $5,000
Total interest paid
$500
$500
$500
$500
$500
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Company ABC Five Year Free Cash Flow Analysis Upside Case Terminal EBITDA Multiple Approach
Projected Fiscal Year Ending March 31,
US$ in thousands
Net Income Net Interest Expense / (Income) Marginal Tax Rate Financing Tax Shield Minority Interest in Net Income Earnings Before Interest Depreciation and Amortization Amortization of Intangibles Increase in Deferred Taxes Change in Net Working Capital Capital Expenditures Unlevered Free Cash Flow Terminal EBITDA Terminal Adjusted Free Cash Flow
2002 $10,667.6 500.0 16.0% (80.0) 0.0 $11,087.6 8,965.5 0.0 0.0 663.8 (19,050.0) $1,666.9
2003 $10,915.1 500.0 15.0% (75.0) 0.0 $11,340.1 12,284.3 0.0 0.0 (53.4) (7,500.0) $16,071.0
2004 $13,472.5 500.0 15.0% (75.0) 0.0 $13,897.5 14,144.5 0.0 0.0 (51.9) (7,950.0) $20,040.1
2005 $21,193.3 500.0 15.0% (75.0) 0.0 $21,618.3 9,725.0 0.0 0.0 (90.6) (8,800.0) $22,452.7
2006 $24,806.0 500.0 15.0% (75.0) 0.0 $25,231.0 9,693.8 0.0 0.0 (142.7) (10,000.0) $24,782.1 $39,377.3 $25,088.3
1
4.0x
Terminal EBITDA Multiple Range 4.5x 5.0x 5.5x Terminal Value $177,198 $196,887 $216,575 Present Value of Firm Value $93,934 $100,130 $106,327 92,344 98,419 104,495 90,789 96,746 102,702 89,268 95,109 100,950 87,780 93,508 99,235 Implied Perpetuity Growth Rate 10.6% 11.9% 13.1% 11.0 12.4 13.5 11.4 12.8 14.0 11.9 13.3 14.4 12.3 13.7 14.9
6.0x
4.0x
Terminal EBITDA Multiple Range 4.5x 5.0x 5.5x Implied Terminal P/E Multiple 10.7x 11.5x 12.3x Equity Value as of 3/31/01 $91,434 $97,630 $103,827 89,844 95,919 101,995 88,289 94,246 100,202 86,768 92,609 98,450 85,280 91,008 96,735 Terminal Value / Present Value 59.4% 61.9% 64.1% 59.2% 61.7% 64.0% 59.0% 61.6% 63.8% 58.9% 61.4% 63.6% 58.7% 61.3% 63.5%
6.0x
$157,509 WACC 26.0% 26.5% 27.0% 27.5% 28.0% WACC 26.0% 26.5% 27.0% 27.5% 28.0%
$236,264 WACC $112,524 110,570 108,659 106,790 104,963 WACC 14.0% 14.5 15.0 15.4 15.9 26.0% 26.5% 27.0% 27.5% 28.0% 26.0% 26.5% 27.0% 27.5% 28.0%
9.9x
13.1x
$87,737 86,269 84,833 83,428 82,053
$85,237 83,769 82,333 80,928 79,553
$110,024 108,070 106,159 104,290 102,463
8.9% 9.3 9.7 10.2 10.6
56.5% 56.3% 56.2% 56.0% 55.8%
66.1% 65.9% 65.8% 65.6% 65.5%
(a) Equity Value equals Firm Value less total straight and convertible debt, straight and convertible preferred stock and minority interest, plus cash, options and warrants proceeds and investments in unconsolidated subsidiaries. (b) Equity Value per Share equals Equity Value divided by Diluted shares outstanding, before Treasury Stock Method share buy-back.
DCF Assumptions
Terminal Multiple Based on
1 2 3 2 2006 Revenue 2006 EBITDA 2006 Earnings 2006 EBITDA Data $112,506.6 39,377.3 24,806.0 $39,377.3 Mid-Range 1.0x 5.0 10.0 5.0x Sensitivity 0.1x 0.5 0.5 0.5x
DCF Assumptions
Investment in Uncons. Subs. Minority Interest Terminal Year Net Debt Terminal Year Net Income Latest Fiscal Year End Valuation Date Implied Days Before Valuation Date Implied Days Left After Valuation Date 0.0 0.0 ($87,920.7) 24,806.0 3/31/01 3/31/01 0 365
Company ABC IRR Analysis Upside Case
US$000, except per share data Summary Assumptions Entry Amount Current Market Price Premium to Market Investment Price per Share Shares Purchased ('000) Total Shares Outstanding (Post) % of New Shares Issued As of 3/31 Investment Return Calculation 2006E EBITDA 5.0x 6.0x 7.0x 2006E Sales 1.0x 1.1x 1.2x Note: Assumes no tax leakage
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$7,528.0 $0.00 0.0% $8.00 941.0 5,647.0 16.7% 2001 2002 2003
Exchange Rate Net Debt @ 2006 2006E EBITDA 2006E Sales Assumed Investment Date
1.0 ($87,920.7) $39,377.3 $112,506.6 31/03/2001
2004
2005
2006
($7,528.0) (7,528.0) (7,528.0)
$0.0 0.0 0.0
$0.0 0.0 0.0
Incremental financing $0.0 $0.0 0.0 0.0 0.0 0.0
$47,459.5 $54,021.2 $60,582.9
IRR 44.5% 48.3% 51.8%
($7,528.0) (7,528.0) (7,528.0)
$0.0 0.0 0.0
$0.0 0.0 0.0
$0.0 0.0 0.0
$0.0 0.0 0.0
$33,398.6 $35,273.4 $37,148.2
34.7% 36.2% 37.6%
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Company ABC Valuation Using Comparables Upside Case
2001 (USD$ in thousands, Except per Share Data) Balance Sheet Total Assets Long-term Debt Net Worth Income Statement Revenues EBITDA Net Income Market Data Shares Outstandings ('000) Share Price Number of Customers Equity Valuation/Market Cap. Net Debt Enterprise Value Earnings Growth (CAGR past 3 years)
ABC
Peer A
Peer B
Peer C
38,171 5,000 18,697
30,000 1,000 15,000
38,000 2,000 17,500
42,000 4,000 18,000
65,000 15,050 6,250
54,000 36,000 23,000
60,000 38,000 20,000
45,000 34,000 21,000
5,647 8.0 650,000 45,176 2,500 47,676 22%
5,000 30 600,000 150,000 50,000 200,000 6%
5,000 40 500,000 200,000 100,000 300,000 8%
5,000 55 600,000 275,000 200,000 475,000 10%
2001 Earnings Growth (CAGR past 3 years) Price-Earning Ratio EV / EBITDA EV / Sales Price to Book (Equity) EV / Customer
ABC 22% 7.23 3.17 0.73 2.42 73.35
Peer A 6% 6.52 5.56 3.70 10.00 333.33
Peer B 8% 10.00 7.89 5.00 11.43 600.00
Peer C 10% 13.10 13.97 10.56 15.28 791.67
Industry Average 9.87 9.14 6.42 12.24 575
Note: Peer companies are those public companies with similar nature of business of target firm .
20.00 01 P/E 15.00 10.00 5.00 0% 5% 10% 15% 20% 25% 30% EPS Growth
*
BUY THE ORIGINAL DOCUMENT TEMPLATE: http://www.gazhoo.com Valuation Using Venture Capital Method Upside Case
Assumptions: (USD$ in thousands, Except per Share Data) Target Rate of Return (IRR) Investment Amount (US$'MM) Percentage of Dilution in ESOP Percentage of Dilution in IPO Percentage of Dilution in other Rounds Prior to IPO Average PE Ratio Total Current Share Outstanding
15% 7,528.00 10% 15% 0% 9.9 4,706
Exit Year (USD$ in thousands, Except per Share Data) Net Income Terminal Value Discounted Terminal Value Required Final Percentage Ownership Required Current Percentage Ownership Number of New Shares Price per New Share ($) Implied Pre-money Valuation Implied Post-money Valuation
2001
2002 10,668 105,314 91,577 8.22% 10.40% 546 13.78 64,865 72,393
2003 10,915 107,758 81,480 9.24% 11.69% 623 12.09 56,883 64,411
2004 13,472 133,004 87,453 8.61% 10.89% 575 13.09 61,604 69,132
2005 21,193 209,227 119,626 6.29% 7.96% 407 18.50 87,038 94,566
2006 24,806 244,893 121,755 6.18% 7.82% 399 18.85 88,721 96,249
Control Page
General Model Information
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Company Name
Market Price
52 Week High 52 Week Low Currency Dollars In Dollar Header Historical Year Use LTM data Fiscal Year End Month Fiscal Year End Day Date Header Acquiror Latest Full Year of Historical Financi
Company ABC Date $0.00 00/01/1900
$0.00 00/01/1900 $0.00 00/01/1900 USD$
thousands
Enter units in lower case
(USD$ in thousands, Except per Share Data)
2001 Year of Last Full Year of Historical Data
Yes
3 March Fiscal Year End Month : 1 = Jan, 2 = Feb, etc.. 31 Enter Last Day of Fiscal Year, ex. 31
Projected Fiscal Year Ending March 31,
31/03/2001 Acquiror's Latest Full Year of Historical Financials End Date
#REF!