Loading library
Mid-Market Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Complete a lighting carve-out LBO with purchase price allocation, a closing balance sheet and a five-year integrated forecast.
Complete a lighting carve-out LBO with purchase price allocation, a closing balance sheet and a five-year integrated forecast. You have three hours and a template. Model circular interest and the cash sweep, then calculate returns and entry/exit multiple sensitivities.
Candleby's parent has decided to concentrate on its core building products and has agreed to sell 100% of Candleby's shares to the fund, with completion on 31 December 2025. Candleby owes the parent a loan of £55m, which is repaid at closing. The debt for the buyout is committed: a Term Loan, Fixed-Rate Notes and an undrawn revolving credit facility (RCF). Before the investment committee meets, the deal partner wants a full model, including the opening balance sheet after the purchase price allocation. The committee's questions are how quickly the debt comes down while replacement demand is strong, what the fund makes on a sale at the end of 2030 or earlier, and how returns move if the price or the exit multiple changes.
This case requires paid access.
Starting files
Solution files
This case costs £19 and is available to customers with an active £499 membership.
Get Alpha