Overview

The Private Equity Acquisition Model provides a business
valuation of a target company for investment. The Private Equity Acquisition
Model allows for multiple payment scenarios and Entry/Exit Multiple while
analyzing a target business for acquisition. Included in the template you will
find: 

        
The Income Statement, Balance Sheet and Cash
Flow Statement

        
An Assumptions Section with key drivers for the
target company

        
Supporting Schedules Section for PPE and Working
Capital

        
Deal Assumptions section highlighting payment
structure, Entry/Exit Multiples, Terminal Value and Purchase Price

        
Levered and Unlevered Free Cash Flows using
Discounted Cash Flows and Leveraged Buyout, respectively

        
IRR Sensitivity Analysis using Entry/Exit
multiples and Purchase Price

First is the Assumptions sections where Assumptions are
entered in the cells for the projection periods. All assumptions can be
modified to fit specific key drivers of the business to see their impact on the
Private Equity Model. Up to 5 years of historical data can be entered into the
income statement, balance sheet, and cash flow statement; the following
projected years are driven by formulas from the Assumptions section. The
Supporting Schedules section consists of all formulas that are tied to the
Assumptions and 3 Statement sections so no editing is necessary. The Valuation
& Returns section consists of a separate set of assumptions pertaining to
the Timing of Payments, Terminal Value and Other Assumptions to drive the
valuation along with projected Unlevered Free Cash Flow. There is a Returns
Analysis that will give you Net Present Value, IRR and Cash on Cash multiple
based on the DCF Valuation. The levered returns follows a Leveraged Buyout
(LBO) structure were the terms of the loan can be input to determine the IRR
and Cash on Cash multiple of the Levered Free Cash Flow. Lastly, the
Sensitivity Analysis measures the impact of the Entry/Exit Multiple and
Purchase on the IRR of the acquisition.

All cells in blue font are input cells where custom
information can be entered. All cells in black font are formulas set to
streamline the model. Sections are grouped to condense the model to view sections
individually.
 

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