- 3 statement and operating model
- Operating scenarios
- Transaction assumptions
- Debt and interest schedule
- Levered IRR analysis by investor type
- Sensitivity analysis
- Bank debt – the least expensive form of financing instrument, and with a lower interest rate. However, banks are wrapped in red tape, which can restrict a company.
- High Yield Debt/ Subordinated Debt – typically an unsecured debt, carrying a higher interest rate than the Bank Debt. Where liquidation occurs, Bank Debt is also paid before the High Yield Debt.
- Mezzanine Debt – often funded by hedge funds and private equity investors, with a higher interest rate than the others.