E-BSOHTATFFS

E-BSOHTATFFS - 580.9 Explanation of Adjustments Adjustments...

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Adjusting Target Firm's Financials Assumptions: Revenue growth (%) 1.05 1.05 1.05 Direct cost of sales as % of revenue 0.62 0.62 0.62 Indirect cost of sales as % of revenue 0.15 0.15 0.15 Rent 0.05 0.05 0.05 Insurance 0.02 0.02 0.02 Advertising 0.02 0.02 0.02 0.02 0.02 0.02 Director Fees 0.03 0.03 0.03 Training 0.01 0.01 0.01 All Other Indirect Expenses 0.02 0.02 0.02 Financials as Submitted by Ta Base Year Year 1 Year 2 Year 3 Revenue 8000.0 8400.0 8820.0 9261.0 Less: Direct Cost of Sales 4960.0 5208.0 5468.4 5741.8 Equals: Gross Profit 3040.0 3192.0 3351.6 3519.2 Less: Indirect Cost of Sales Salaries & Benefits 1200.0 1260.0 1323.0 1389.2 Rent 400.0 420.0 441.0 463.1 Insurance 160.0 168.0 176.4 185.2 Advertising 160.0 160.0 160.0 160.0 240.0 168.0 176.4 185.2 Director Fees 240.0 252.0 264.6 277.8 Training 80.0 84.0 88.2 92.6 All Other Indirect Expenses 160.0 168.0 176.4 185.2 Equals: EBITDA 400.0 512.0 545.6
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Unformatted text preview: 580.9 Explanation of Adjustments Adjustments to Target Firm' Eliminate part-time family member's salaries 150.0 157.5 165.4 Eliminate owner's salary, benefits & directors' fees 125.0 131.3 137.8 Increase targeted advertising-75.0-78.8-82.7 Increase T&E expense 50.0 52.5 55.1 Reduce office space (rent) 100.0 100.0 100.0 Increase training budget-100.0-100.0-100.0 Adjusted EBITDA 1112.0 1165.6 1221.9 1.05 1.05 0.62 0.62 0.15 0.15 0.05 0.05 0.02 0.02 0.02 0.02 0.02 0.02 0.03 0.03 0.01 0.01 0.02 0.02 arget Firm Year 4 Year 5 9724.1 10210.3 6028.9 6330.4 3695.1 3879.9 1458.6 1531.5 486.2 510.5 194.5 204.2 160.0 160.0 194.5 204.2 291.7 306.3 97.2 102.1 194.5 204.2 617.9 656.8 's Financials 173.6 182.3 144.7 151.9-86.8-91.2 57.9 60.8 100.0 100.0-100.0-100.0 1281.0 1343.0...
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E-BSOHTATFFS - 580.9 Explanation of Adjustments Adjustments...

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