Beginning Debt: 750

Interest: 10%
Tax Rate: 40%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

EBITDA: 250.0 250.0 250.0 250.0 250.0 250.0

D&A: (35.0) (35.0) (35.0) (35.0) (35.0)

Interest: (75.0) (75.0) (75.0) (75.0) (75.0)

EBT: 140.0 140.0 140.0 140.0 140.0

Taxes: (56.0) (56.0) (56.0) (56.0) (56.0)

Net Income: 84.0 84.0 84.0 84.0 84.0

Cash Flow Statement Adjustments:

Plus: Depreciation: 35.0 35.0 35.0 35.0 35.0

Plus: Change in Working Capital: 6.0 6.0 6.0 6.0 6.0
Less: CapEx: (35.0) (35.0) (35.0) (35.0) (35.0)

Cash Generated (assuming no debt repayment): 90.0 90.0 90.0 90.0 90.0

Debt Balance: 750.0 750.0 750.0 750.0 750.0 750.0

EBITDA Exit Multiple: 6.0 x

Exit EV: 1,500.0

Debt: (750.0)
Cash Generated: 450.0
Equity Proceeds: 1,200.0

Targeted MOIC: 3.0 x

Initial Investment: 400.0

Initial Price: 1,150.0

Multiple: 4.6 x
EBITDA constant.

CapEx = D&A = 35MM (since PP&E stays constant)

CapEx = D&A = 35MM (since PP&E stays constant)

"Source of Funds" at 6MM per year.
CapEx = D&A = 35MM (since PP&E stays constant)

So the initial investment is $400MM to get a 3x MOIC… they used $750MM of debt, so
the total initial purchase price = $400 + $750 = $1150