Macabacus Complex LBO Model

Ryan MacGregor
www.macabacus.com
feedback@macabacus.com
© 2014 Macabacus, LLC
Built with Macabacus Macros

DISCLAIMER
This model presents a hypothetical LBO of a hypothetical company. Any similarity between the financial metrics of this company and
actual companies is purely coincidental. Macabacus does not provide investment, accounting, or tax advice.
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 Macabacus Complex LBO Model
x Dashboard
x Summary Credit Statistics
x Income Statement
x Balance Sheet
x Cash Flow Statement
x Working Capital Assumptions
x Equity Investments
x Debt Schedule
x Interest Rates & Summary
x Amortization of Capitalized Financing Costs
x Depreciation of Fixed Assets
x Amortization of Intangible Assets
x Tax Schedules
x Shares Outstanding
x Operating Assumptions
x Financing Scenarios & Drivers
x Transaction Balance Sheet
x DCF Analysis
x WACC Analysis
x Returns Analysis

Equity Allocation
Initial Equity Dilution
($ in millions) Investment Undiluted Partial Full
Sponsor equity $520.7 98.12% 95.91% 95.43%
Management equity 10.0 1.88% 1.84% 1.83%
Equity kickers
Term loan - A – – – –
Term loan - B – – – –
Senior note – – – –
Subordinated note – – 2.00% 1.99%
Mezzanine – – – –
Seller note – – – –
Convertible bond – – – –
[Debt 8] – – – –
Preferred stock - A – – 0.25% 0.25%
Preferred stock - B – – – –
Management performance equity – – – 0.50%
Total $530.7 100.00% 100.00% 100.00%

($ in millions)

Exit Year?

Equity Value Calculation

EBITDA multiple method
EBITDA – annualized
( x ) Forward EBITDA multiple
Enterprise value
( – ) Net debt
Total equity value

GAAP P/E multiple method

GAAP net income – annualized
( x ) Forward P/E multiple
Total equity value

Cash P/E multiple method

Cash net income – annualized
( x ) Forward P/E multiple
Total equity value

Equity value used in calculating equity returns

Prepayment Premiums
Term loan - A
Term loan - B
Senior note
Subordinated note
Mezzanine
Seller note
Convertible bond
[Debt 8]
Preferred stock - A
Preferred stock - B

Cash Flows to Contributors of Capital

Subordinated note
Initial investment
Cash interest payments
Periodic amortization
Principal repayment
Prepayment premium
Equity participation at exit
Total cash flows
IRR –
Cash-on-cash NA

Mezzanine
Initial investment
Cash interest payments
Periodic amortization
Principal repayment
Prepayment premium
Equity participation at exit
Total cash flows
IRR –
Cash-on-cash NA

Preferred stock - A
Initial investment
Cash dividends
Principal repayment
Prepayment premium
Equity participation at exit
Total cash flows
IRR –
Cash-on-cash NA

Preferred stock - B
Initial investment
Cash dividends
Principal repayment
Prepayment premium
Equity participation at exit
Total cash flows
IRR –
Cash-on-cash NA

Sponsor equity
Initial investment
Equity participation at exit
Total cash flows
IRR –
Cash-on-cash NA
Management equity
Initial investment
Equity participation at exit
Total cash flows
IRR –
Cash-on-cash NA
 3 Quarters Fis
Closing Ending Year 2 Year 3
12/31/12 9/30/13 2014 2015
0 0 0

$126.5 $155.9 $160.1

5.0x 5.0x 5.0x
$632.5 $779.5 $800.5
Err:522 Err:522 Err:522
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$22.9 Err:522 Err:522

14.0x 14.0x 14.0x
$320.1 Err:522 Err:522

$57.6 Err:522 Err:522

14.0x 14.0x 14.0x
$806.7 Err:522 Err:522

Err:522 Err:522 Err:522

– – –
– – –
– – –
5.00% 3.00% 2.00%
2.00% 2.00% 2.00%
– – –
– – –
– – –
– – –
– – –

($50.0)
– Err:522 Err:522
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($50.0) Err:522 Err:522 Err:522

–
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($9.5)
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($9.5) Err:522 Err:522 Err:522

–
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($520.7)
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($520.7) Err:522 Err:522 Err:522
($10.0)
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($10.0) Err:522 Err:522 Err:522
Err:522
 Fiscal Years Ending September 30,
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
2016 2017 2018 2019 2020 2021 2022
1 0 0 0 0 0 0

$161.3 $162.4 $163.6 $164.8 $166.0 $167.2 $168.5

5.0x 5.0x 5.0x 5.0x 5.0x 5.0x 5.0x
$806.3 $812.2 $818.1 $824.0 $830.1 $836.1 $842.3
Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
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14.0x 14.0x 14.0x 14.0x 14.0x 14.0x 14.0x
Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

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14.0x 14.0x 14.0x 14.0x 14.0x 14.0x 14.0x
Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

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– – – – – – –
– – – – – – –
– – – – – – –
1.00% – – – – – –
2.00% 2.00% – – – – –
– – – – – – –
– – – – – – –
– – – – – – –
– – – – – – –
– – – – – – –

Err:522 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

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