1) You are buying a company for $8mm. At the time, the company's EBITDA is $1.8mm. You are given the following information:NowYear 1Year 2Year 3Year 4Year 5EBITDA1,800,000 2,000,000 2,200,000 2,420,000 2,662,000 2,928,200 Depreciation / Amort.400,000 400,000 400,000 400,000 400,000 CapEx500,000 500,000 500,000 500,000 500,000 Debt StructurePrincipal Amnt. Interest Rate Term Term Loan2,000,000 7%4 equal annual installments with interestSeller Note 1,000,000 10%Annual interest payments, balloon payment at the end of Year 5Line of Credit1,000,000 8%Interest payments each year, paid off at end of year 52) Fill in the following DEBT SCHEDULE for Years 1 - 5 & determine the DSCR for Years 1 - 5:Year 0Year 1Year 2Year 3Year 4Year 5Principal Payments:Term LoanSeller NoteLine of CreditTotalInterest Payments:Term LoanSeller NoteLine of CreditTotalCash FlowDSCRBalanceTerm LoanSeller NoteLine of CreditTotal3) Build a cap table for the deal. You know what you purchased the company for and what you financed with debt.- You set up NewCo (i.e. you're doing an asset purchase) and put $1mm of your own cash in the account.
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