Project: Develop a FULL LBO model of a company you like $($TESLA$).$ The project should have the following:

$-$ Simple LBO model and the $3$ F$/$S model

o Dynamic $3$ F$/$S model with projections

$-$ Summary DCF$/$Returns$.$ You don$$t have to have sensitivity tables but if you want additional credit will be added.

$-$ Present findings in class $$ presentation slides, about $10-15$ minutes

$-$ Report, $1-2$ page executive summary minimum. Generally $3-5$ Pages. In terms of the company in the markets,

you may also want to include any company charts on valuation you deem relevant.

$-$ You may use the existing mini project build if you want to continue off an existing framework or you can use a

completely new company deal.

$-$ PLEASE include all relevant excel, background $($EDGAR$,$ Factset$)$ and model files for review

This assignment can be done in TEAMS of up to $5$ or solo. The assignment will be graded on a check system; those that

do it individually will have a higher starting value since they will have to execute all steps themselves.

DUE DATE $($TENTATIVE$)$: $12/9/2023$

Required Elements:

Select a PUBLIC company with known financials and build the $3$ F$/$S model. Balance and project. Build F$/$S model using

simplification techniques and projection assumptions we used in class. Bring data in from a financial data source $($your

choice, EDGAR, Factset, etc, tied the $3$ financial statements. Use the Excel model files given and the instructions to build

your own $3$ statement financial model.

$$ Project the financial statements for at least $3$ years, showing assumptions and growth tables

$$ TIE the $3$ financial statements to create a dynamic model, balance it$.$

$$ IF you don$$t want to deal with circuit breakers and circularity, you don$$t have to$,$ don$$t use average interest

expense, instead use the previous years interest. Note this will tend to underpredict interest expense.

$$ Take the cash flow inputs and find the financial metrics, EBITDA$/$FREE CASH FLOW; input these assumptions into

the simple LBO model,

o If you use this method $1)$ input the desired rate of return $($IRR$)$ that investors require and see if the deal

works; $2)($BONUS$)$ input a test case and determine what the rate of return could be based on the asking

price, by goal seeking or using solver in Excel.