CALC-02 · Buy

Acquisition cash flow and financing

Sources and uses, debt service by tranche, cash after debt and DSCR, with a downside test.

Inputs

• Purchase price / EV (€)
• Normalised EBITDA (€)
• Buyer equity for the price (€)
• Closing costs (€)
• Reserve (€)
• Cash taxes per year (€)
• Maintenance capex per year (€)
• Increase in working capital (€)
• Extra management cost not yet in EBITDA (€)
• Bank loan (€)
• Bank rate (%)
• Bank term (years)
• Seller note (€)
• Seller note rate (%)
• Seller note term (years)

Outputs

• CFADS
• Annual debt service
• Cash after debt
• DSCR
• Purchase funding gap
• Buyer capital at risk
• Simple cash yield on capital
• Cash after debt — EBITDA −20%
• Cash after debt — rate +2pp
• Cash after debt — both

Simulation — not a proposal, a valuation or a financing approval.