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CAN YOU PLEASE DO IT IN EXCEL AND SHOW INSTRUCTION HOW YOU DID IT? THANK YOU Firm XYZ is considering a leveraged buyout of BadlyRun.

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CAN YOU PLEASE DO IT IN EXCEL AND SHOW INSTRUCTION HOW YOU DID IT? THANK YOU

Firm XYZ is considering a leveraged buyout of BadlyRun. It plans to exit at the end of 5 years. BadlyRun LTM EBITDA of $250mm and XYZ believes that the new management team could keep EBITDA flat for the next 5 years. XYZ is taking on a debt of $750mm at 10% interest, and BadlyRun expects working capital to be a source of funds (cash inflow) at $6mm per ye it requires CAPEX of $35mm per year and it has a tax rate of 40%. Assume no transaction fees, zero minimum cash required, and that PP&E on the balance sheet remains constant (meaning no expense in PPE) for the next 5 years. Assume that excess cash is NOT used to repay debt, and instead simply accumulates on the Balance Sheet. Calculate the purchase price of BadlyRun required for XYZ to obtain a 3.0x invested capital if it plans to sell BadlyRun after five years at an EV / EBITDA multiple of 6.0x. Firm XYZ is considering a leveraged buyout of BadlyRun. It plans to exit at the end of 5 years. BadlyRun LTM EBITDA of $250mm and XYZ believes that the new management team could keep EBITDA flat for the next 5 years. XYZ is taking on a debt of $750mm at 10% interest, and BadlyRun expects working capital to be a source of funds (cash inflow) at $6mm per ye it requires CAPEX of $35mm per year and it has a tax rate of 40%. Assume no transaction fees, zero minimum cash required, and that PP&E on the balance sheet remains constant (meaning no expense in PPE) for the next 5 years. Assume that excess cash is NOT used to repay debt, and instead simply accumulates on the Balance Sheet. Calculate the purchase price of BadlyRun required for XYZ to obtain a 3.0x invested capital if it plans to sell BadlyRun after five years at an EV / EBITDA multiple of 6.0x

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