Enterprise Value Analyze

LBO Quick Model                                                         € in Millions                           



Sources             €       Purchase Information                    Returns         2021                                
Excess Cash             € 496.2         2020 EBITDA         € 216.8         2026 EBITDA                                         
Revolver                –       Purchase Multiple           17.0x       Exit Multiple           17.0x                               
Term Loan               1,600.0         Enterprise Value            € 3,685.6       Enterprise Value                                            
Sponsor Equity              2,135.6         Less: Debt          (247.3)     Less: Debt                                          
Total Sources               € 4,231.8       Plus: Cash          496.2       Plus: Cash                                          
                        Entry Equity Value          € 3,934.5       Exit Equity Value                                           
Uses                                                                                        
Refinance Existing Debt             € 247.3                                                                         
Purchase Existing Equity                3,934.5                                                                         
Transaction Expenses                50.0                                                                        
Financing Fees              –                                                                       
Total Uses              € 4,231.8                                                                       

                    Return                                                                  

                        12/31/2020  12/31/2021  12/31/2022  12/31/2023  12/31/2024  12/31/2025  12/31/2026                                      
                    Cash Flow                                                                   

                    IRR                                                                 
                    MOIC                                                                    

                    IRR Sensitivity                                                                 

                            Entry EBITDA Multiple                                                           
                            15.0x   16.0x   17.0x   18.0x   19.0x   20.0x                                       
                        15.0x                                                               
                        16.0x                                                               
                    Exit    17.0x                                                               
                    EBITDA      18.0x                                                               
                    Multiple    19.0x                                                               
                        20.0x                                                               

                    MOIC Sensitivity                                                                    

                            Entry EBITDA Multiple                                                           
                            15.0x   16.0x   17.0x   18.0x   19.0x   20.0x                                       
                        15.0x                                                               
                        16.0x                                                               
                    Exit    17.0x                                                               
                    EBITDA      18.0x                                                               
                    Multiple    19.0x                                                               
                        20.0x                                                               

INCOME STATEMENT                                                                                        

                2020                2020    2021    2022    2023    2024    2025                                    
Sales               € 2,000.0               € 1,600.0   € 1,360.0   € 1,292.0   € 1,292.0   € 1,421.2   € 1,705.4                                   
% Growth                                (20.0%) (15.0%) (5.0%)  –   10.0%   20.0%                                   

COGS                (1,000.0)               (800.0) (680.0) (646.0) (646.0) (710.6) (852.7)                                 
Gross Margin                € 1,000.0               € 800.0     € 680.0     € 646.0     € 646.0     € 710.6     € 852.7                                     
% Margin                50.0%               50.0%   50.0%   50.0%   50.0%   50.0%   50.0%                                   

Selling expenses                (200.0)             (200.0) (200.0) (200.0) (200.0) (200.0) (200.0)                                 
R&D             (200.0)             (200.0) (200.0) (200.0) (200.0) (200.0) (200.0)                                 
G&A             (200.0)             (200.0) (200.0) (200.0) (200.0) (200.0) (200.0)                                 
Operating Profit                € 400.0                 € 200.0     € 80.0  € 46.0  € 46.0  € 110.6     € 252.7                                     
% Margin                20.0%               12.5%   5.9%    3.6%    3.6%    7.8%    14.8%                                   

Interest Expense                                                                                        
Pre-tax Profit                                                                                      
Taxes                                                                                       
Net Income                                                                                      

Operating Profit                                                                                        
D&A                             50.0    50.0    50.0    50.0    50.0    50.0                                    
EBITDA                                                                                      
% Margin                                                                                        

Taxes                               30.0%   30.0%   30.0%   30.0%   30.0%   30.0%                                   

BALANCE SHEET                                                                                       
                2020    Uses    Sources Close PF BS 2020    2021    2022    2023    2024    2025                                    
Assets                                                                                      
Cash and Equivalents                € 496.2                                                                         
A/R             297.8                                                                       
Inventory               310.6                                                                       
Prepaid & Other             87.1                                                                        
Total Current Assets                € 1,191.7                                                                       

PP&E                € 259.0                                                                         
Intangibles             423.0                                                                       
Goodwill                –                                                                       
Total Assets                € 1,873.7                                                                       

Liabilities                                                                                     
A/P             € 402.0                                                                         
Advances received               72.5                                                                        
Other liabilities and deferred income               290.6                                                                       
Total Current Liabilities               € 765.1                                                                         

Revolver                –                                                                       
Term Loan               247.3                                                                       
Total Liabilities               € 1,012.4                                                                       

Total Equity                861.3                                                                       

Total Liabilities + Equity              € 1,873.7                                                                       
Check               –                                                                       

Working Capital Drivers                                                                                     
A/R Days                                                                                        
Inventory Days                                                                                      
Prepaid & Other as % of Revenue                                                                                     

A/P Days                                                                                        
Advances received as % of Revenue                                                                                       
Other liabilities and deferred income as % of Revenue                                                                                       


CASH FLOW STATEMENT                                                                                     
                                2020    2021    2022    2023    2024    2025                                    

Net Income                                                                                      
Depreciation                                                                                        
Decrease / (Increase) in A/R                                                                                        
Decrease / (Increase) in Inventory                                                                                      
Decrease / (Increase) in Prepaid & Other                                                                                        
Increase / (Decrease) in A/P                                                                                        
Increase / (Decrease) in advances received                                                                                      
Increase / (Decrease) in other liabilities and deferred income                                                                                      
Cash Flow from Operating Activities                                                                                     

Capital Expenditures                                (50.0)  (50.0)  (50.0)  (50.0)  (50.0)  (50.0)                                  
Cash Flow from Investing Activities                                                                                     

Issuance / (Repayments) of Outstanding Debt                                                                                     
Cash Flow from Financing Activities                                                                                     


Beginning Cash Balance                                                                                      
Net Change in Cash                                                                                      
Ending Cash Balance                                                                                     

DEBT SCHEDULE                                                                                       
                                2020    2021    2022    2023    2024    2025                                    

Beginning Cash Balance                                                                                      
Minimum Cash Balance                100.0               (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)                                 
Cash Flow before Financing Activities                                                                                       
Cash Flow Available for Revolver Paydown                                                                                        

Revolver                                                                                        
Beginning Balance                                                                                       
Issuance / (Paydown)                                                                                        
Ending Balance                                                                                      
Average Balance                                                                                     
Interest Expense                4.00%                                                                       

Cash Flow Available for Term Loan Paydown                                                                                       

Term Loan                                                                                       
Beginning Balance                                                                                       
Issuance / (Paydown)                                                                                        
Ending Balance                                                                                      
Average Balance                                                                                     
Interest Expense                4.00%                                                                       

Net Issuance /  (Paydown of Debt)                                                                                       

Total Interest Expense