35% target IRR for baring investors 30% target IRR for baring investors

334.8 terminal value 334.8 terminal value

Cash-out 4 years Cash-out 4 years
Equity Value Equity Value
Baring capital 100.7976 Baring capital
Management Contribution 2 Management Contribution
Employee Contribution 3 Employee Contribution
Total Equity Value 105.7976 Total Equity Value
Enterprise Value Enterprise Value
Senior Debt 190 Senior Debt
Mezanine Debt 65 Mezanine Debt
Enterprise Value 360.7976 Enterprise Value
fees 10 fees
Price paid to seller excluding fees 350.7976 Price paid to seller excluding fees
Total Equity value, Enterprise value, Price Paid to seller
Assumptions
117.2228
2
3
122.2228
190
65
377.2228
10
367.2228
Total Equity value, Enterprise value, Price Paid to seller
Assumptions
Assumptions
Enterprise beta=beta asset=1 Year 1989 1990 1991
Beta Debt=0 Short Term US govt bond 8.61% 8.61% 8.61%
Market Risk Premium 7% 7% 7%
Enterprise Beta 1 1 1
Senior Debt 190 185 175
Mezanine Debt 65 65 65
Equity Value 199.4711 244.8644 296.9413
Total Enterprise Value 454.4711 494.8644 536.9413
% Debt 0.5611 0.5052 0.4470
% Equity 0.4389 0.4948 0.5530
Equity Beta 2.2784 2.0210 1.8082
Cost Of Equity 22.757% 21.268%
CAPM (IRR) 0.20653
Value of debt at each year
obtained from cash flows
Ending market value of equity
from terminal value analysis
1992 1993
8.61% 8.61%
7% 7%
1 1
160 115.4
65 65
356.4157 422.7
581.4157 603.1
0.3870 0.2991
0.6130 0.7009
1.6313 1.4268
20.029% 18.597%