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Amounts in mln USD 31-12-18 actuals 31-12-19 forecast 31-12-20 forecast 31-12-21 forecast 31-12-22 forecast 31-12-23 forecast 31-12-24 forecast 250 250 300 250 315 250 339 250 356 250 366 250 383 375 Balance sheet Goodwill Tangible fixed assets Inventories Accounts Receivable Other operating short term assets 180 144 84 189 151 88 203 163 95 213 171 220 176 103 225 180 105 61 1,196 230 184 107 100 Cash Total 55 1,013 54 1,047 40 1,090 38 1,128 48 1,163 75 1,229 450 467 488 508 530 552 574 250 250 250 250 250 250 250 Equity Interest bearing debt Operating provisions Accounts Payable Other operating short term liabilities Total 90 100 110 120 187 36 1,013 95 197 38 1,047 211 41 1,090 105 222 43 1,128 229 44 115 234 45 1,196 239 46 1,163 1,229 919 613 586 267 30 36 126 132 Profit & Loss Account Revenues 1,180 1,250 1,350 1,422 1,465 1,502 1,532 - Cost of goods sold 720 756 813 853 879 901 Gross margin 460 494 537 569 601 - Personnel cost 225 237 254 275 282 288 Other operating cost 120 126 135 142 146 150 153 EBITDA 115 131 148 160 165 169 172 Depreciation 31 33 34 37 39 EBIT 85 100 115 129 133 - Interest 15 15 15 15 15 15 15 85 100 117 118 - Taxes 24 26 29 30 Net profit 47 61 74 83 85 88 88 A private equity firm considers acquiring the company per 31/12/2018 and uses multiples valuation. It will use 3.5x the 2018 EBITDA of debt to finance the acquisition at the entry date. The private equity firm targets to exit the company after 5 years at the end of 2023 and expects to realise an exit EBITDA-multiple of 7.0x. Because all intermediate cash flows the firm will generate are used to repay the debt, you may assume that the expected net debt level at the end of 2023 will be 30% of the initial debt level at entry. Calculate the maximum enterprise value and equity investment the PE is willing to invest at the entry date when the private equity-house targets an IRR of 25%. PBT 70 23 111 28 114 29 Enterprise value: 658.3 Equity value: 255.8 O Enterprise value: 750.6 Equity value: 348.1 O Enterprise value: 1183.0 Equity value: 1062.3 O Enterprise value: 790.1 Equity value: 387.6

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