Please consider the following company financials: Amounts in min dollars Balance sheet Goodwill Tangible fixed assets Inventories Accounts Receivable Other operating short term assets Cash Total Equity Interest bearing debt Operating provisions Accounts Payable Other operating short term liabilities Total Profit & Loss Account Revenues -Cost of goods sold Gross margin - Personnel cost -Other operating cost EBITDA -Depreciation EBITA -Amortization EBIT -Interest PBT - Taxes Net profit Equity Investment: 1194 O Enterprise value: 984.3 Equity Investment: 592.8 O Enterprise value: 987.3 31-12-18 31-12-19 31-12-20 31-12-21 31-12-22 31-12-23 31-12-24 actuals forecast forecast forecast forecast forecast forecast Equity Investment: 391.3 208 ************ 234 90 172 23 42 769 234 312 26 158 39 769 88988* 780 452 328 117 62 149 31 118 0 118 16 102 26 76 208 246 95 180 25 42 796 246 312 31 166 41 796 819 475 344 123 66 155 33 122 0 122 16 106 27 79 200 263 102 193 26 37 829 259 312 36 178 44 829 876 508 368 131 70 167 34 133 0 133 16 117 29 88 208 276 107 202 28 37 858 272 312 41 187 46 858 920 534 386 138 74 174 36 138 0 138 16 122 31 91 208 290 112 213 29 36 888 286 312 46 196 48 888 966 560 406 145 77 184 37 147 0 147 16 131 33 98 ****** 888585******** 208 301 117 221 30 41 918 301 312 51 204 50 918 1,005 422 151 80 191 39 152 0 152 16 136 34 102 208 310 120 228 31 50 947 317 312 56 210 52 947 1,035 600 435 155 83 197 41 156 A private equity firm considers acquiring the company per 31/12/2018 and uses multiples valuation. It will use 4x the 2018 EBITDA of debt to finance the acquisition at the entry date. The private equity firm targets to exit the company after 5 years at the end of 2023 and expects to realise an exit EBITDA-multiple of 7.5x. Because all intermediate cash flows the firm will generate are used to repay the debt, you may assume that the expected net debt level at the end of 2023 will be 40% of the initial debt level at entry. Calculate the maximum enterprise value and equity investment the PE is willing to invest at the entry date when the private equity-house targets an IRR of 25%. O Enterprise value: 982.6 Equity Investment: 402.6 O Enterprise value: 1433 0 156 16 140 35 105