Here are some suggestions as to how returns could be laid out and calculated when LBO modelling.
Most of the numbers above we calculated previously. Here we are assuming that:
- The business could be sold at an enterprise value of 28.0. EBITDA of 4.0 x 7 = 28.0 – see note (i) in the table above.
- Net proceeds to shareholders would be 17.0. 28.0 minus 10.0 debt = 18.0 shares valuation, minus 1.0 fees = 17.0 net proceeds. See note (ii) in the table above.
You can download a spreadsheet showing the LBO modelling structure, and the calculation of returns.
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