LBO Quick Model € in Millions

Sources € Purchase Information Returns 2021
Excess Cash € 496.2 2020 EBITDA € 216.8 2026 EBITDA
Revolver – Purchase Multiple 17.0x Exit Multiple 17.0x
Term Loan 1,600.0 Enterprise Value € 3,685.6 Enterprise Value
Sponsor Equity 2,135.6 Less: Debt (247.3) Less: Debt
Total Sources € 4,231.8 Plus: Cash 496.2 Plus: Cash
Entry Equity Value € 3,934.5 Exit Equity Value
Uses
Refinance Existing Debt € 247.3
Purchase Existing Equity 3,934.5
Transaction Expenses 50.0
Financing Fees –
Total Uses € 4,231.8

Return

12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026
Cash Flow

IRR
MOIC

IRR Sensitivity

Entry EBITDA Multiple
15.0x 16.0x 17.0x 18.0x 19.0x 20.0x
15.0x
16.0x
Exit 17.0x
EBITDA 18.0x
Multiple 19.0x
20.0x

MOIC Sensitivity

Entry EBITDA Multiple
15.0x 16.0x 17.0x 18.0x 19.0x 20.0x
15.0x
16.0x
Exit 17.0x
EBITDA 18.0x
Multiple 19.0x
20.0x

INCOME STATEMENT

2020 2020 2021 2022 2023 2024 2025
Sales € 2,000.0 € 1,600.0 € 1,360.0 € 1,292.0 € 1,292.0 € 1,421.2 € 1,705.4
% Growth (20.0%) (15.0%) (5.0%) – 10.0% 20.0%

COGS (1,000.0) (800.0) (680.0) (646.0) (646.0) (710.6) (852.7)
Gross Margin € 1,000.0 € 800.0 € 680.0 € 646.0 € 646.0 € 710.6 € 852.7
% Margin 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%

Selling expenses (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) (200.0)
R&D (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) (200.0)
G&A (200.0) (200.0) (200.0) (200.0) (200.0) (200.0) (200.0)
Operating Profit € 400.0 € 200.0 € 80.0 € 46.0 € 46.0 € 110.6 € 252.7
% Margin 20.0% 12.5% 5.9% 3.6% 3.6% 7.8% 14.8%

Interest Expense
Pre-tax Profit
Taxes
Net Income

Operating Profit
D&A 50.0 50.0 50.0 50.0 50.0 50.0
EBITDA
% Margin

Taxes 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%

BALANCE SHEET
2020 Uses Sources Close PF BS 2020 2021 2022 2023 2024 2025
Assets
Cash and Equivalents € 496.2
A/R 297.8
Inventory 310.6
Prepaid & Other 87.1
Total Current Assets € 1,191.7

PP&E € 259.0
Intangibles 423.0
Goodwill –
Total Assets € 1,873.7

Liabilities
A/P € 402.0
Advances received 72.5
Other liabilities and deferred income 290.6
Total Current Liabilities € 765.1

Revolver –
Term Loan 247.3
Total Liabilities € 1,012.4

Total Equity 861.3

Total Liabilities + Equity € 1,873.7
Check –

Working Capital Drivers
A/R Days
Inventory Days
Prepaid & Other as % of Revenue

A/P Days
Advances received as % of Revenue
Other liabilities and deferred income as % of Revenue

CASH FLOW STATEMENT
2020 2021 2022 2023 2024 2025

Net Income
Depreciation
Decrease / (Increase) in A/R
Decrease / (Increase) in Inventory
Decrease / (Increase) in Prepaid & Other
Increase / (Decrease) in A/P
Increase / (Decrease) in advances received
Increase / (Decrease) in other liabilities and deferred income
Cash Flow from Operating Activities

Capital Expenditures (50.0) (50.0) (50.0) (50.0) (50.0) (50.0)
Cash Flow from Investing Activities

Issuance / (Repayments) of Outstanding Debt
Cash Flow from Financing Activities

Beginning Cash Balance
Net Change in Cash
Ending Cash Balance

DEBT SCHEDULE
2020 2021 2022 2023 2024 2025

Beginning Cash Balance
Minimum Cash Balance 100.0 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
Cash Flow before Financing Activities
Cash Flow Available for Revolver Paydown

Revolver
Beginning Balance
Issuance / (Paydown)
Ending Balance
Average Balance
Interest Expense 4.00%

Cash Flow Available for Term Loan Paydown

Term Loan
Beginning Balance
Issuance / (Paydown)
Ending Balance
Average Balance
Interest Expense 4.00%

Net Issuance / (Paydown of Debt)

Total Interest Expense

 

 

 

 

 

 

 

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