Consider a PE that is planning an LBO, using a 4x D/EBITDA structure, on the following target company: P&L TARGET (MME) Year o 5.000 Sales 500 EBITDA Margin EBITDA/Sales 10% BS TARGET (MME) Assets Year o Liabilities Year 0 2.000 2.000 Shareholders' Equity 800 500 Bank Debt Tangible Fixed Assets (Net) Current Assets Cash & Marketable Securities Total Assets 200 500 Current Liabilities 3,000 3.000 Total Liabilities Value of the Target MME 500 EBITDA 7.0 x EV/EBITDA 3,500 EV 500 Bank Debt Cash & Marketable Securities Disposable Assets -200 300 3,200 Equity Value WC MME 200,000 SALES 150,000 COGS N dias 50,000 Receivables 90 12,500 Inventories 30 37.500 (-) Receivables 90 25,000 WC 1. Provide a summary of the sources and uses of funds 2. Sketch the balance sheet of the NewCo post-financing and before the LBO 3. Sketch the balance sheet of the NewCo after the acquisition of the target shares 4. Sketch the balance sheet of the merged NewCo+Target after the LBO 5. Provide a summary of the structure of debt Consider a PE that is planning an LBO, using a 4x D/EBITDA structure, on the following target company: P&L TARGET (MME) Year o 5.000 Sales 500 EBITDA Margin EBITDA/Sales 10% BS TARGET (MME) Assets Year o Liabilities Year 0 2.000 2.000 Shareholders' Equity 800 500 Bank Debt Tangible Fixed Assets (Net) Current Assets Cash & Marketable Securities Total Assets 200 500 Current Liabilities 3,000 3.000 Total Liabilities Value of the Target MME 500 EBITDA 7.0 x EV/EBITDA 3,500 EV 500 Bank Debt Cash & Marketable Securities Disposable Assets -200 300 3,200 Equity Value WC MME 200,000 SALES 150,000 COGS N dias 50,000 Receivables 90 12,500 Inventories 30 37.500 (-) Receivables 90 25,000 WC 1. Provide a summary of the sources and uses of funds 2. Sketch the balance sheet of the NewCo post-financing and before the LBO 3. Sketch the balance sheet of the NewCo after the acquisition of the target shares 4. Sketch the balance sheet of the merged NewCo+Target after the LBO 5. Provide a summary of the structure of debt