Table 14 Return analysis structure 2 It is interesting to see that the cash

Table 14 return analysis structure 2 it is

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Table 14: Return analysis structure 2 It is interesting to see that the cash return increases each year and is in 2017 as high as 4,91x and the IRR 25,5%. There is an increase in IRR when the exit multiple increase to 10 or 11 which could lead to an IRR of 36,3% in 2015, indicating a really good return on the investment. Table 15: IRR sensitivity analysis structure 2 Return Analysis Return at Various Exit Years Projection Period 2011 2012 2013 2014 2015 2016 2017 Entry EBITDA Multiple 7,8 Initial Equity Investment 101269,407 EBITDA 47340,8 50654,6 54200,4 57994,5 62054,1 66397,9 71045,7 Exit EITDA Multiple 9 Enterprise Value at Exit 426066,831 455891,509 487803,9148 521950,189 558486,702 597580,7712 639411,4252 Less: Term Loan B 188619,9 172112,8 152766,9 130310,6 104450,5 74869,0 41223,2 Senior Subordinated Notes 101269,4 101269,4 101269,4 101269,4 101269,4 101269,4 101269,4 Total Dept 289889,3 273382,2 254036,3 231580,0 205719,9 176138,4 142492,6 Equity Value at Exit 136177,6 182509,3 233767,6 290370,1 352766,8 421442,3 496918,8 Cash Return 1,34 1,80 2,31 2,87 3,48 4,16 4,91 2010-12-30 2011-12-30 2012-12-30 2013-12-31 2014-12-30 2015-12-30 2016-12-30 2017-12-30 Initial Equity Investment -101269,4 -101269,407 -101269,407 -101269,407 -101269,407 -101269,4066 -101269,4066 Equity Proceeds 136177,6 182509,3 233767,6 290370,1 352766,8 421442,3 496918,8 IRR 34,5% 34,2% 32,1% 30,1% 28,3% 26,8% 25,5% IRR Sensitivity Analysis- Exit Multiple and Exit Year IRR- Assuming 7,8x Entry Multiple Exit Year 2013 2014 2015 2016 2017 7,0 7,4% 14,5% 17,7% 19,1% 21,5% Exit Multiple 8,0 21,0% 23,1% 23,5% 23,2% 24,4% 9,0 32,1% 30,1% 28,3% 26,8% 25,5% 10,0 41,6% 36,2% 32,6% 29,9% 29,2% 11,0 49,9% 41,5% 36,3% 32,7% 31,2%
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25 4.4.9. The complete LBO model All different parts in the LBO model have now been presented. They come together and create the following table; the complete LBO model. It contains the summary of the previous calculated results and will give sponsors and investors a good overview of the target company’s ( Unibet Group plc.) potential. Most interesting are purchase price, return analysis and certainly capitalization, where you may follow the % bank debt repaid for each and every year. In 2017, 100% is repaid.
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26 Unibet Group Plc. Leverage Buyout Model (£ in thousands) Transaction Summary Sources of Funds Uses of Funds Purchase Price Return Analysis % of Total Multiple of EBITDA % of Total Equity Purchase Price 386040,3 Exit Year 2017 Amount Sources 2010 Amount Uses Plus: Existing Net Dept 6 885,0 Entry Multiple 7,8x Senior Secured Dept 182284,9 45% 4,2 Purchase Unibet Equity 386040,3 95% Enterprise Value 340 660,3 Exit Multiple 9x Senior Subordinated Dept 81015,5 20% 1,8 Repay Existing Dept 6885 1,7% Transaction Multiples IRR 24,8% Equity Contribution 141777,2 35% 3,2 Financing Fees 8101,6 2% Enterprice Value/ Sales 2,3 Cash Return 3,03 Other Fees and Expens 4050,8 1,0% 2010 147479 Total Sources 405 077,6 100% 9,2 Total Uses 405077,6 100% Enterprise Value / EBITDA 7,8 2010 43800 Summary Financial Data Historical period Projection Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sales 81428 123445 138318,0 147479,0 157802,5 168848,7 180668,1 193314,9 206846,9 221326,2 236819,0 % growth 13,4% 51,6% 12,0% 6,6% 7% 7% 7% 7% 7% 7% 7% Gross Profit 76150 112405 120677 128993 138077,2 147742,6 158084,6 169150,5 180991,1 193660,4 207216,7 % margin 93,5% 91,1% 87,2% 87,5% 87,5% 87,5% 87,5% 87,5% 87,5% 87,5% 87,5% EBITDA 25900 46300 41900 43800 47340,8 50654,6 54200,4 57994,5 62054,1 66397,9 71045,7 % margin 31,8% 37,5% 30,3% 29,7% 30% 30% 30% 30% 30% 30% 30% Capital Expences 6604 1957 837 1303 1262,4 1350,8 1445,3 1546,5 1654,8 1770,6 1894,6 % sales 8,1% 1,6% 0,6% 0,9% 0,8% 0,8% 0,8% 0,8% 0,8% 0,8% 0,8% Cash interest Expense 19229,9 17842,7 16245,6 14419,2 12342,3 9992,2 8464,2 Free Cash Flow EBITDA 47340,8 50654,6 54200,4 57994,5 62054,1 66397,9 71045,7 Less: cash interest expense 19229,9 17842,7 16245,6 14419,2 12342,3 9992,2 8464,2 Plus: Interest Income - - - - - - - Less: Income Taxes 3683,6 4963,6 6282,4 7642,5 9046,3 10496,5 11995,75744 Less: Capital Expenditures 1262,4 1350,8 1445,3 1546,5 1654,8 1770,6 1894,6 Less: Increse in Net Working Capital 8673 6945 2404 -1408 1578,0 1688,5 1806,7 1933,1 2068,5 2213,3 2368,2 Free Cash Flow 21586,8 24809,1 28420,4 32453,0 36942,1 41925,3 46323,0 Cumulative Free Cash Flow 21586,8 46395,9 74816,3 107269,3 144211,5 186136,8 232459,9 Capitalization Cash Term Loan B 182284,9 162217,4 139025,0 112414,8 82070,2 47649,0 8781,6 0,0 Senior Subordinated notes 81015,5 81015,5 81015,5 81015,5 81015,5 81015,5 81015,5 81015,5 Total Dept 263300 243233 220041 193430 163086 128665 89797 81016
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