Leveraged Buyout

Target Leverag 30%

Prior Sales 1800 Taxes 25%
COGS 40% CapEx 6%
R&D 5% ChgNWC 2%
SGA % 8% Depreciation 4%
Short Growth 10% Rf 3%
Long Growth 4% Rp 5.50%

1 2 3 4
2018 2019 2020 2021
Sales 1980 2178 2396 2635
COGS 792 871 958 1054
Gross Margin 1188 1307 1437 1581

R&D 99 109 120 132

SGA 158 174 192 211

EBIT 931 1024 1126 1239

Interest 225 191 151 103
EBT 706 832 975 1135
Taxes 176 208 244 284

Net Income 529 624 731 852

Depreciation 79 87 96 105
OCF 608 711 827 957

CapEx 119 131 144 158

Change in NWC 40 44 48 53
Terminal Value

FCF 450 537 635 746

PV

LBO Value of Equi9032.9454469

Determing Debt Schedule

Debt 3000 2550 2013 1377
Interest 225 191 151 103
Principal 450 537 635 746
Total Payment 675 728 786 849
FCF 450 537 635 746
Cash after Debt pa 0 0 0 0

Buyout 10000 10000 10000 10000

Equity 7000 7450 7987 8622
We 70% 75% 80% 86%
Unlevered Beta 1.30 1.30 1.30 1.30
Levered Beta 1.72 1.63 1.55 1.46
Ke 12% 12% 12% 11%

#shares 200
value per share 45

｀｀
Current Kd 0%
LBO Kd 7.50%
Debt 3000
Equity Offer 7000
#Shares 200
Current Beta 1.3

5 6 Sell as All Equity Firm

2022 2023 Terminal Value
2899 3015 FCF6 942
1160 1206 K 10.1500%
1739 1809 G 4%

145 151 Terminal 15319

232 241

1362 1417
47 0
1315 1417
329 354

｀
986 1063
116 121
1102 1183

174 181

58 60
14688
15559

870 942
9032.9454469

631
47
631
678
15559
15559

10000
9368
94%
1.30
1.37
11%
 Leveraged Buyout
Target Leverag 30%
Prior Sales 1800 Taxes 25%
COGS 40% CapEx 6%
R&D 5% ChgNWC 2%
SGA % 8% Depreciation 4%
Short Growth 10% Rf 3%
Long Growth 4% Rp 5.50%

1 2 3 4
2018 2019 2020 2021
Sales 1980 2178 2396 2635
COGS 792 871 958 1054
Gross Margin 1188 1307 1437 1581

R&D 99 109 120 132

SGA 158 174 192 211

EBIT 931 1024 1126 1239

Interest 225 191 151 103
EBT 706 832 975 1135
Taxes 176 208 244 284

Net Income 529 624 731 852

Depreciation 79 87 96 105
OCF 608 711 827 957

CapEx 119 131 144 158

Change in NWC 40 44 48 53
Terminal Value

FCF 450 537 635 746

PV

LBO Value of Equi9032.9454469

Determing Debt Schedule

Debt 3000 2550 2013 1377
Interest 225 191 151 103
Principal 450 537 635 746
Total Payment 675 728 786 849
FCF 450 537 635 746
Cash after Debt pa 0 0 0 0

Buyout 10000 10000 10000 10000

Equity 7000 7450 7987 8622
We 70% 75% 80% 86%
Unlevered Beta 1.30 1.30 1.30 1.30
Levered Beta 1.72 1.63 1.55 1.46
Ke 12% 12% 12% 11%

#shares 200
value per share 45
Current Kd 0%
LBO Kd 7.50%
Debt 3000
Equity Offer 7000
#Shares 200
Current Beta 1.3

5 6 Sell as All Equity Firm

2022 2023 Terminal Value
2899 3015 FCF6 942
1160 1206 K 10.1500%
1739 1809 G 4%

145 151 Terminal 15319

232 241

1362 1417
47 0
1315 1417
329 354

986 1063
116 121
1102 1183

174 181

58 60
14688
15559

870 942
9032.9454469

631
47
631
678
15559
15559

10000
9368
94%
1.30
1.37
11%