The firm is acquiring $100\%$ ?ownership in the target company.

The firm plans to exit the investment at the end of Year $5.$

There are no interim cash inflows to the firm, in the form of special dividends or otherwise, during the hold period.

All Free Cash Flow in a given period should be used to pay down the Senior Debt balance.

 What is the Total Equity Value at exit?

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EBITDA Purchase Multiple Project WeekFive LTM EBITDA Transaction Assumptions $10,0 Shares Outstanding 10,0x Options Outstanding 10,000 0,000 Implied Enterprise Value $100,0 Average Option Exercise $0,00 Existing Net Debt Implied Equity Value $30,0 FD Shares Outstanding 10,000 $70,0 Implied Price Per Share $7,00 Sources and Uses of Funds Sources Multiple Rate $ mm % Uses Sr. Debt 4,0x 8,00% $40,0 40,0% Equity Purchase Sub. Debt 0,0x 0,00% 0,0 0,0% Refinance Net Debt Mezz. 0,0x 0,00% 0,0 0.0% Fees & Expenses Equity 6,0x 60.0 60,0% Other 10,0x $100,0 100,0% Sr. Debt/EBITDA Net Debt/EBITDA EBITDA Sr. Interest EBITDA / Total Interest Sr. Debt Paydown Time & Date: Source of Projections: Comments Fees & Expenses $ mm Fee % $ mm $70,0 30,0 Sr. Debt 2,00% Sub. Debt 0,00% 0.0 Mezz. Debt 0,00% 0.0 Other Fees $100,0 Total Fees Credit Statistics PF LTM Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Income Statement Assumptions LTM 0 Year 1 1 Year 2 2 Year 3 3 Year 4 4 Year 5 5 Year 6 6 Year 7 7 Sales $50,0 $55,0 $60,5 $66,6 $73,2 $80,5 $88,6 $97,4 Growth % 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% EBITDA . $10,0 $11,6 $13,3 $15,3 $16,8 $18,5 $20,4 $22,4 Margin % 20.0% 21,0% 22,0% 23,0% 23,0% 23,0% 23,0% 23,0% Depreciation $2.5 $2,8 $3,0 $3,3 $3,7 $4,0 $4,4 $4,9 Margin % 5,0% 5,0% 5,0% 5,0% 5,0% 5,0% 5,0% 5,0% L Amortization $0,0 $0,0 $0,0 $0.0 $0.0 $0.0 $0,0 $0,0 Margin % 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% EBIT $7,5 $8,8 $10,3 $12,0 $13,2 $14,5 $15,9 $17,5 Interest Expense Sr. Debt Sub. Debt Mezz. Debt Amort. of Financing Fees Total Interest Expense EBT Taxes 40,0% Net Income 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0,0 0.0 0,0 0,0 0,0 $0,0 $0,0 $0.0 $0.0 $0,0 $0,0 $0,0 $8,8 $10,3 $12,0 $13,2 $14,5 $15,9 $17,5 4.1 4,8 5.3 5,8 6,4 7,0 $5,3 $6,2 $7,2 $7,9 $8,7 $9,6 $10,5 Cash Flow and Debt Repayment Summary Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Income $5,3 $6,2 $7,2 $7,9 $8,7 $9,6 $10,5 Depreciation & Amortization 2,8 3,0 3,3 3,7 4,0 4,4 4,9 Capital Expenditures 2,5% of Sales (1,4) (1,5) (1,7) (1,8) (2,0) (2,2) (2,4) Working Capital 10,0% of Change in Sales (0,5) (0,6) (0,6) (0,7) (0,7) (0,8) (0,9) Free Cash Flow $6,2 $7,1 $8,2 $9,1 $10.0 $11,0 $12,1 Sr. Debt at Beginning of Period $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 Repayment of Senior Debt Sr. Debt at End of Period $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 Cash at Beginning of Period Excess Cash from Operations after Debt Repayment Cash at End of Period $0,0 $6,2 $13,3 $21,5 $30,6 $40,6 $51,6 6,2 7.1 8,2 9.1 10,0 11,0 12,1 $6,2 $13,3 $21,5 $30,6 $40,6 $51,6 $63,6 Enterprise Value in Exit Year (Based on Purchase Price Multiple) Net Debt in Exit Year Equity Value IRR in Exit Year Equity Investment Year 1 Return Year 2 Return Year 3 Return Year 4 Return Year 5 Return Year 6 Return Year 7 Return IRR to Financial Sponsor Year 5 EBITDA Purchase Multiple Project WeekFive LTM EBITDA Transaction Assumptions $10,0 Shares Outstanding 10,0x Options Outstanding 10,000 0,000 Implied Enterprise Value $100,0 Average Option Exercise $0,00 Existing Net Debt Implied Equity Value $30,0 FD Shares Outstanding 10,000 $70,0 Implied Price Per Share $7,00 Sources and Uses of Funds Sources Multiple Rate $ mm % Uses Sr. Debt 4,0x 8,00% $40,0 40,0% Equity Purchase Sub. Debt 0,0x 0,00% 0,0 0,0% Refinance Net Debt Mezz. 0,0x 0,00% 0,0 0.0% Fees & Expenses Equity 6,0x 60.0 60,0% Other 10,0x $100,0 100,0% Sr. Debt/EBITDA Net Debt/EBITDA EBITDA Sr. Interest EBITDA / Total Interest Sr. Debt Paydown Time & Date: Source of Projections: Comments Fees & Expenses $ mm Fee % $ mm $70,0 30,0 Sr. Debt 2,00% Sub. Debt 0,00% 0.0 Mezz. Debt 0,00% 0.0 Other Fees $100,0 Total Fees Credit Statistics PF LTM Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Income Statement Assumptions LTM 0 Year 1 1 Year 2 2 Year 3 3 Year 4 4 Year 5 5 Year 6 6 Year 7 7 Sales $50,0 $55,0 $60,5 $66,6 $73,2 $80,5 $88,6 $97,4 Growth % 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% 10,0% EBITDA . $10,0 $11,6 $13,3 $15,3 $16,8 $18,5 $20,4 $22,4 Margin % 20.0% 21,0% 22,0% 23,0% 23,0% 23,0% 23,0% 23,0% Depreciation $2.5 $2,8 $3,0 $3,3 $3,7 $4,0 $4,4 $4,9 Margin % 5,0% 5,0% 5,0% 5,0% 5,0% 5,0% 5,0% 5,0% L Amortization $0,0 $0,0 $0,0 $0.0 $0.0 $0.0 $0,0 $0,0 Margin % 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% EBIT $7,5 $8,8 $10,3 $12,0 $13,2 $14,5 $15,9 $17,5 Interest Expense Sr. Debt Sub. Debt Mezz. Debt Amort. of Financing Fees Total Interest Expense EBT Taxes 40,0% Net Income 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0,0 0.0 0,0 0,0 0,0 $0,0 $0,0 $0.0 $0.0 $0,0 $0,0 $0,0 $8,8 $10,3 $12,0 $13,2 $14,5 $15,9 $17,5 4.1 4,8 5.3 5,8 6,4 7,0 $5,3 $6,2 $7,2 $7,9 $8,7 $9,6 $10,5 Cash Flow and Debt Repayment Summary Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Income $5,3 $6,2 $7,2 $7,9 $8,7 $9,6 $10,5 Depreciation & Amortization 2,8 3,0 3,3 3,7 4,0 4,4 4,9 Capital Expenditures 2,5% of Sales (1,4) (1,5) (1,7) (1,8) (2,0) (2,2) (2,4) Working Capital 10,0% of Change in Sales (0,5) (0,6) (0,6) (0,7) (0,7) (0,8) (0,9) Free Cash Flow $6,2 $7,1 $8,2 $9,1 $10.0 $11,0 $12,1 Sr. Debt at Beginning of Period $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 Repayment of Senior Debt Sr. Debt at End of Period $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 $40,0 Cash at Beginning of Period Excess Cash from Operations after Debt Repayment Cash at End of Period $0,0 $6,2 $13,3 $21,5 $30,6 $40,6 $51,6 6,2 7.1 8,2 9.1 10,0 11,0 12,1 $6,2 $13,3 $21,5 $30,6 $40,6 $51,6 $63,6 Enterprise Value in Exit Year (Based on Purchase Price Multiple) Net Debt in Exit Year Equity Value IRR in Exit Year Equity Investment Year 1 Return Year 2 Return Year 3 Return Year 4 Return Year 5 Return Year 6 Return Year 7 Return IRR to Financial Sponsor Year 5