Chat with us, powered by LiveChat Two friends Harley and Davidson agree on a company deal with an implied enterprise value of \$5M. Harley invests \$3M. The deal is structured as all-common, and American Private Equit - Writeedu

## 06 Aug Two friends Harley and Davidson agree on a company deal with an implied enterprise value of \$5M. Harley invests \$3M. The deal is structured as all-common, and American Private Equit

I need a Microsoft  Excel assignment and LBO Analysis. all the resources and contents are attached in the attachments. Please text me only if you are expert in Excel and the other techincal things, otherwise please don't waste my time.

NAME: ___________________________________________________

Complete Questions Questions 1 and 2 These are the only Choices.

—————————————————————————————————————

1. (30% REQUIRED)

Two friends Harley and Davidson agree on a company deal with an implied enterprise value of \$5M. Harley invests \$3M. The deal is structured as all-common, and American Private Equity comes in and offers \$8.5M million for the company. Harley owns 60% and Davidson owns 40%.

a. Set up the All-Common structure for the two partners. Calculate the payout table and discuss

b. If the deal is structured as redeemable preferred with \$1,000 cheap common for the two partners, calculate the payout table and discuss

c. The deal is Convertible Preferred for the two partners. Calculate the payout table and discuss

d. What is the importance of capital structure ownership in private equity.

2. (70%) VALUATION: Perform an LBO analysis of small cap company using different types of debt to value a purchase of another company. It is important to discuss the details of what you are doing and your conclusion. If there is no debt, propose hypothetical debt that you would need to purchase the company outright. You can follow and use the Excel Spreadsheet provided on Blackboard Chapter 5 Rosenbaum Excel. Make sure this is detailed and discuss your reasoning and results.

=========================================================

,

## TS

 ValueCo Corporation Leveraged Buyout Analysis Financing Structure: Structure 1 (\$ in millions, fiscal year ending December 31) Operating Scenario: Base Transaction Summary Sources of Funds Uses of Funds Purchase Price Return Analysis % of Total Multiple of EBITDA % of Total Offer Price per Share -0 Exit Year 2017 Amount Sources 9/30/2012 Cumulative Pricing Amount Uses Fully Diluted Shares -0 Entry Multiple 8.0x Revolving Credit Facility -0 – % – x – x L+425 bps Purchase ValueCo Equity \$4,350.0 72.5% Equity Purchase Price \$4,350.0 Exit Multiple 8.0x Term Loan A -0 – % – x – x NA Repay Existing Debt 1,500.0 25.0% Plus: Existing Net Debt 1,250.0 IRR 20% Term Loan B 2,150.0 35.8% 3.1x 3.1x L+450 bps Tender / Call Premiums 20.0 0.3% Enterprise Value \$5,600.0 Cash Return 2.5x Term Loan C -0 – % – x 3.1x NA Financing Fees 90.0 1.5% 2nd Lien -0 – % – x 3.1x NA Other Fees and Expenses 40.0 0.7% Transaction Multiples Options Senior Notes 1,500.0 25.0% 2.1x 5.2x 8.500% Enterprise Value / Sales Financing Structure 1 Senior Subordinated Notes -0 – % – x 5.2x NA LTM 9/30/2012 \$3,385.0 1.7x Operating Scenario 1 Equity Contribution 2,100.0 35.0% 3.0x 8.2x 2012E 3,450.0 1.6x Cash Flow Sweep 1 Rollover Equity -0 – % – x 8.2x Enterprise Value / EBITDA Cash Balance 1 Cash on Hand 250.0 4.2% 0.4x 8.6x LTM 9/30/2012 \$700.0 8.0x Average Interest 1 Total Sources \$6,000.0 100.0% 8.6x 8.6x Total Uses \$6,000.0 100.0% 2012E 725.0 7.7x Financing Fees 1 Summary Financial Data Historical Period Projection Period LTM Pro forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2009 2010 2011 9/30/2012 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sales \$2,600.0 \$2,900.0 \$3,200.0 \$3,385.0 \$3,450.0 \$3,708.8 \$3,931.3 \$4,127.8 \$4,293.0 \$4,421.7 \$4,554.4 \$4,691.0 \$4,831.8 \$4,976.7 \$5,126.0 % growth NA 11.5% 10.3% NA 7.8% 7.5% 6.0% 5.0% 4.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Gross Profit \$988.0 \$1,131.0 \$1,280.0 \$1,350.0 \$1,380.0 \$1,483.5 \$1,572.5 \$1,651.1 \$1,717.2 \$1,768.7 \$1,821.8 \$1,876.4 \$1,932.7 \$1,990.7 \$2,050.4 % margin 38.0% 39.0% 40.0% 39.9% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% EBITDA \$491.4 \$580.0 \$672.0 \$700.0 \$725.0 \$779.4 \$826.1 \$867.4 \$902.1 \$929.2 \$957.1 \$985.8 \$1,015.4 \$1,045.8 \$1,077.2 % margin 18.9% 20.0% 21.0% 20.7% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% Capital Expenditures 136.4 114.0 144.0 152.3 155.3 166.9 176.9 185.8 193.2 199.0 204.9 211.1 217.4 224.0 230.7 % sales 5.2% 3.9% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% Cash Interest Expense 252.5 246.6 233.8 218.8 201.7 182.8 163.7 141.2 128.9 128.9 128.9 Total Interest Expense 263.9 258.0 245.1 230.1 213.1 194.2 175.0 151.9 135.0 128.9 128.9 Free Cash Flow EBITDA \$779.4 \$826.1 \$867.4 \$902.1 \$929.2 \$957.1 \$985.8 \$1,015.4 \$1,045.8 \$1,077.2 Less: Cash Interest Expense (246.6) (233.8) (218.8) (201.7) (182.8) (163.7) (141.2) (128.9) (128.9) (128.9) Plus: Interest Income -0 -0 -0 -0 -0 -0 0.0 1.1 3.2 5.4 Less: Income Taxes (113.6) (131.2) (148.1) (164.0) (178.5) (193.3) (209.9) (224.8) (236.2) (245.5) Less: Capital Expenditures (166.9) (176.9) (185.8) (193.2) (199.0) (204.9) (211.1) (217.4) (224.0) (230.7) Less: Increase in Net Working Capital (47.6) (41.0) (36.2) (30.4) (23.7) (24.4) (25.1) (25.9) (26.7) (27.5) Free Cash Flow \$204.6 \$243.3 \$278.7 \$312.9 \$345.2 \$370.7 \$398.4 \$419.4 \$433.3 \$450.0 Cumulative Free Cash Flow 204.6 448.0 726.7 1,039.5 1,384.7 1,755.4 2,153.8 2,573.2 3,006.5 3,456.6 Capitalization Cash -0 -0 -0 -0 -0 -0 -0 \$3.8 \$423.2 \$856.5 \$1,306.6 Revolving Credit Facility -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Term Loan A -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Term Loan B 2,150.0 1,945.4 1,702.0 1,423.3 1,110.5 765.3 394.6 -0 -0 -0 -0 Term Loan C -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Existing Term Loan -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 2nd Lien -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Other Debt -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Total Senior Secured Debt \$2,150.0 \$1,945.4 \$1,702.0 \$1,423.3 \$1,110.5 \$765.3 \$394.6 -0 -0 -0 -0 Senior Notes 1,500.0 1,500.0 1,500.0 1,500.0 1,500.0 1,500.0 1,500.0 1,500.0 1,500.0 1,500.0 1,500.0 Total Senior Debt \$3,650.0 \$3,445.4 \$3,202.0 \$2,923.3 \$2,610.5 \$2,265.3 \$1,894.6 \$1,500.0 \$1,500.0 \$1,500.0 \$1,500.0 Senior Subordinated Notes -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Total Debt \$3,650.0 \$3,445.4 \$3,202.0 \$2,923.3 \$2,610.5 \$2,265.3 \$1,894.6 \$1,500.0 \$1,500.0 \$1,500.0 \$1,500.0 Shareholders' Equity 2,040.0 2,225.3 2,439.3 2,680.9 2,948.4 3,239.7 3,555.1 3,897.6 4,264.4 4,649.7 5,050.4 Total Capitalization \$5,690.0 \$5,670.7 \$5,641.3 \$5,604.3 \$5,558.9 \$5,505.0 \$5,449.8 \$5,397.6 \$5,764.4 \$6,149.7 \$6,550.4 % of Bank Debt Repaid -0 9.5% 20.8% 33.8% 48.3% 64.4% 81.6% 100.0% 100.0% 100.0% 100.0% Credit Statistics % Debt / Total Capitalization 64.1% 60.8% 56.8% 52.2% 47.0% 41.1% 34.8% 27.8% 26.0% 24.4% 22.9% EBITDA / Cash Interest Expense 2.9x 3.2x 3.5x 4.0x 4.5x 5.1x 5.8x 7.0x 7.9x 8.1x 8.4x (EBITDA – Capex) / Cash Interest Expense 2.3x 2.5x 2.8x 3.1x 3.5x 4.0x 4.6x 5.5x 6.2x 6.4x 6.6x EBITDA / Total Interest Expense 2.7x 3.0x 3.4x 3.8x 4.2x 4.8x 5.5x 6.5x 7.5x 8.1x 8.4x (EBITDA – Capex) / Total Interest Expense 2.2x 2.4x 2.6x 3.0x 3.3x 3.8x 4.3x 5.1x 5.9x 6.4x 6.6x Senior Secured Debt / EBITDA 3.0x 2.5x 2.1x 1.6x 1.2x 0.8x 0.4x – x – x – x – x Senior Debt / EBITDA 5.0x 4.4x 3.9x 3.4x 2.9x 2.4x 2.0x 1.5x 1.5x 1.4x 1.4x Total Debt / EBITDA 5.0x 4.4x 3.9x 3.4x 2.9x 2.4x 2.0x 1.5x 1.5x 1.4x 1.4x Net Debt / EBITDA 5.0x 4.4x 3.9x 3.4x 2.9x 2.4x 2.0x 1.5x 1.1x 0.6x 0.2x

## IS

 (\$ in millions, fiscal year ending December 31) Income Statement Historical Period Projection Period LTM Pro forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2009 2010 2011 9/30/2012 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sales \$2,600.0 \$2,900.0 \$3,200.0 \$3,385.0 \$3,450.0 \$3,708.8 \$3,931.3 \$4,127.8 \$4,293.0 \$4,421.7 \$4,554.4 \$4,691.0 \$4,831.8 \$4,976.7 \$5,126.0 % growth NA 11.5% 10.3% NA 7.8% 7.5% 6.0% 5.0% 4.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Cost of Goods Sold 1,612.0 1,769.0 1,920.0 2,035.0 2,070.0 2,225.3 2,358.8 2,476.7 2,575.8 2,653.0 2,732.6 2,814.6 2,899.1 2,986.0 3,075.6 Gross Profit \$988.0 \$1,131.0 \$1,280.0 \$1,350.0 \$1,380.0 \$1,483.5 \$1,572.5 \$1,651.1 \$1,717.2 \$1,768.7 \$1,821.8 \$1,876.4 \$1,932.7 \$1,990.7 \$2,050.4 % margin 38.0% 39.0% 40.0% 39.9% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% Selling, General & Administrative 496.6 551.0 608.0 650.0 655.0 704.1 746.4 783.7 815.0 839.5 864.7 890.6 917.3 944.9 973.2 % sales 19.1% 19.0% 19.0% 19.2% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% Other Expense / (Income) -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 EBITDA \$491.4 \$580.0 \$672.0 \$700.0 \$725.0 \$779.4 \$826.1 \$867.4 \$902.1 \$929.2 \$957.1 \$985.8 \$1,015.4 \$1,045.8 \$1,077.2 % margin 18.9% 20.0% 21.0% 20.7% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% Depreciation 116.0 121.5 145.0 150.0 155.3 166.9 176.9 185.8 193.2 199.0 204.9 211.1 217.4 224.0 230.7 Amortization 39.0 43.5 48.0 50.0 51.8 55.6 59.0 61.9 64.4 66.3 68.3 70.4 72.5 74.7 76.9 EBIT \$336.4 \$415.0 \$479.0 \$500.0 \$518.0 \$556.9 \$590.3 \$619.8 \$644.6 \$663.9 \$683.8 \$704.3 \$725.5 \$747.2 \$769.6 % margin 12.9% 14.3% 15.0% 14.8% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% Interest Expense Revolving Credit Facility -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Term Loan A -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Term Loan B 123.6 117.7 104.9 89.9 72.8 53.9 34.8 12.3 -0 -0 -0 Term Loan C -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Existing Term Loan -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 2nd Lien -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Senior Notes 127.5 127.5 127.5 127.5 127.5 127.5 127.5 127.5 127.5 127.5 127.5 Senior Subordinated Notes -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 Commitment Fee on Unused Revolver 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 Administrative Agent Fee 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Cash Interest Expense \$252.5 \$246.6 \$233.8 \$218.8 \$201.7 \$182.8 \$163.7 \$141.2 \$128.9 \$128.9 \$128.9 Amortization of Deferred Financing Fees 11.3 11.3 11.3 11.3 11.3 11.3 11.3 10.7 6.1 -0 -0 Total Interest Expense \$263.9 \$258.0 \$245.1 \$230.1 \$213.1 \$194.2 \$175.0 \$151.9 \$135.0 \$128.9 \$128.9 Interest Income -0 -0 -0 -0 -0 -0 (0.0) (1.1) (3.2) (5.4) Net Interest Expense \$258.0 \$245.1 \$230.1 \$213.1 \$194.2 \$175.0 \$151.9 \$133.9 \$125.7 \$123.5 Earnings Before Taxes 298.9 345.2 389.7 431.5 469.7 508.8 552.4 591.5 621.5 646.2 Income Tax Expense 113.6 131.2 148.1 164.0 178.5 193.3 209.9 224.8 236.2 245.5 Net Income \$185.3 \$214.0 \$241.6 \$267.5 \$291.2 \$315.5 \$342.5 \$366.8 \$385.3 \$400.6 % margin 5.0% 5.4% 5.9% 6.2% 6.6% 6.9% 7.3% 7.6% 7.7% 7.8% Income Statement Assumptions Sales (% YoY growth) NA 11.5% 10.3% NA 7.8% 7.5% 6.0% 5.0% 4.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Cost of Goods Sold (% margin) 62.0% 61.0% 60.0% 60.1% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% SG&A (% sales) 19.1% 19.0% 19.0% 19.2% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% Other Expense / (Income) (% of sales) – % – % – % – % – % – % – % – % – % – % – % – % – % – % – % Depreciation (% of sales) 4.5% 4.2% 4.5% 4.4% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% Amortization (% of sales) 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% Interest Income 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Tax Rate 38.0% 38.0% 38.0% 38.0% 38.0% 38.0% 38.0% 38.0% 38.0% 38.0%

## BS

(\$ in millions, fiscal year ending December 31)
Balance Sheet
Projection Period
Opening Adjustments Pro Forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
2012 + 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Cash and Cash Equivalents \$250.0 (250.0) -0 -0 -0 -0 -0 -0 -0 \$3.8 \$423.2 \$856.5 \$1,306.6
Accounts Rec

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?

Do you need help with this question?

Get assignment help from WriteEdu.com Paper Writing Website and forget about your problems.

WriteEdu provides custom & cheap essay writing 100% original, plagiarism free essays, assignments & dissertations.

With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.

Chat with us today! We are always waiting to answer all your questions.