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scott@ExcelModels.com YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Operations 80
# Clients 12 15 21 27 35 60
# Clients
$4.5 $5.0
# Projects 15 25 50 60 65 40
# Projects
Projects/Client 1.3 1.7 2.4 2.2 1.9 Avg20
Proj Value
Avg Proj Val $k $4.5 $5.0 $5.0 $6.0 $7.0 12 15 15 25
0
Year 1 Year 2
P&L ($k, except %)
Revenue % Rev: 68 125 250 360 455 140
COGS 25% 17 31 63 90 114 EBIT120
Gross Margin 51 94 188 270 341 Earnings
100
Operating Expense Revenue
80
G&A 12% 8 15 30 43 55 60
R&D 5% 3 6 13 18 23 40 125
S&M 15% 10 19 38 54 68 20 68 35 12
Total OpEx 32% 22 40 80 115 146 19 6
0
EBITDA 29 54 108 155 196 Year 1 Year 2
Dep'n & Amort. 15.0% 10 19 38 54 68
EBIT 19 35 70 101 127 Sales
2,500
Interest 12.5% 8 16 31 45 57 Cust. Acq. Cos
Taxes @ 40% 40.0% 4 8 16 22 28 Proj.2,000
Acq. Cos
Net Income 15.5% 6 12 23 33 42 Proj1,500
GM Contr 4,250
3,825
1,000
Sales & Marketing ($)
500 1,250
Customer Acquisition Cost 844 1,250 1,786 2,000 1,950 844
Project Acquisition Cost 675 750 750 900 1,050 675 750
0
Proj. GM Contrib. 3,825 4,250 4,250 5,100 5,950 Year 1 Year 2

DCF Valuation 2,000

(Capital Expenses) (8) (10) (15) (20) (20) Pre-$
1,500
∆ Net Wkg Cap. (8) (20) 5 0 (10) Debt / Raise
Free Cash Flow Rate: 5 10 70 94 115 1,000
∑FCF / Post-$
Debt 7.5% 500 11
WACC 30.0% 384
Terminal Growth 0.5% 0
DCF Val
PV Free Cash Flow 4 6 32 33 31
Sum PV FCF $496 391 P
(Year 1 Debt) ($113) $113
Pre-Money Equity Val. $384

Capitalization
Raise $350 Mgmt Shares
Pre-Money Valu'n $569 Mgmt Options
$4,000

$3,000

$2,000
 $4,000
Post-Money Valu'n $919 Add'l Shares
F/D Common Shs #Sh (k) Series A Pref' $3,000
Mgmt Shares 1,500
Mgmt Options 2,000 $2,000
$1,500
Add'l Shares 3,000
# Shares
Series A Pref'd 4,000
Total 10,500
Pre-Money $/Share $0.0542
Post-Money $/Share $0.0875

IRR Cumulative FCF ($k)

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Year 1 0
Cash (Out)/In ($350) 5 10 70 94 115 Year(50)
2
(100)
($350)

1-year ### Year 3

5
(150)
2-year ### 10
Year 4
(200)
3-year ### (250)
Year 5
70
-8
4-year ### (300)
94
-98%
(350) (3
5-year -4% (345)
115
(400)
Year 1 Ye
 Group columns to input data & view graphs

80 Year 1 Year 2 Year 3

Operations Year 4 Year 5 8 # Clients
$7.0
60 12 15 21 $6.0
27 35 6 #
$4.5 15 $5.0 $5.0 Projects
40 25 50 60 65 4 Avg Proj
60 65
20 5 5 550 6 7 2 Value
27 35
12 15 15 25 21 ($k)
0 0
Year 1 Year 2 Year 3 Year 4 Year 5

140 Year 1 Year 2 P&LYear 3

($k) Year 4 Year 5 500
455
120 19 35 70 101 127 EBIT
400
100 6 12 23 360
33 42 Earnings
80 68 125 250 360 455 300
250 Revenue
60 127
101 200
40 125 70
100
20 68 35 12
19 6 23 33 42
0 0
Year 1 Year 2 Year 3 Year 4 Year 5

Year 1 Year 2 Year 3 Year 4 Year 5

2,500 Sales & Marketing ($k) 7,000 Cust.
844 1,250 1,786 2,000 1,950 Acq.
5,950 6,000
2,000 675 750 750 900 1,050 Cost
5,100 5,000
3,825 4,250 4,250 5,100 5,950 Proj.
1,500 4,250 4,250 4,000 Acq.
3,825
1,000 2,000 3,000 Cost
1,786 1,950
2,000 Proj GM
500 1,250 Contrib.
844 1,000
675 750 750 900 1,050
0 0
Year 1 Year 2 Year 3 Year 4 Year 5

2,000 DCF Valuation Capitalization

Equity Value ($k)
384 384 384 569 569 569
1,500 919
0 113 113 0 350 350
1,000 0 0 496 0 0 919
496 350
500 113
384 569
0
DCF Valuation Capitalization

Pre-$ Debt / Raise ∑FCF / Post-$

# Shares Post-$ Val'n ($k)

Ownership
1,500 $131
2,000 $175
$4,000 $350 Series A Pref'd
Add'l Shares
$3,000 $263 Mgmt Options
$2,000 $175 Mgmt Shares
 Ownership

$4,000 $350 Series A Pref'd

3,000 $263
Add'l Shares
4,000
$3,000 $350 $263 Mgmt Options
$2,000 $175 Mgmt Shares
$1,500 $131
# Shares Post-$ Val'n ($k)

Cumulative FCF ($k) IRR %

Return
0 (345) -98% -4% 0%
(50) (335) -83% -18% -20%
(100) (56)
(150) (265) -40% -40% -40%
(200) (171) -18% (171) -60%
(250) (56) -4% -80%
-83%
(300) (265)
-98% -100%
(350) (335)
(400) (345) -120%
Year 1 Year 2 Year 3 Year 4 Year 5

Cumulative FCF ($k) IRR %