Loading library
Upper Mid-Market Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Build a simple LBO for a fresh-produce business and assess the value of its expanding juice division.
Build a simple LBO for a fresh-produce business and assess the value of its expanding juice division. You have 90 minutes and a financial summary. Assess management's forecast, compare downside returns and recommend a bid price for the whole business.
Cressing's family shareholders have put the company up for sale and the fund is preparing its bid. The deal would close on 31 March 2026, the last day of Cressing's financial year, and the fund would expect to sell five years later. The sell side has provided a financial summary: actual results for FY2023 to FY2025, the FY2026 budget and management's projections to FY2031, with balance sheets for FY2024, FY2025 and the FY2026 budget.
The fund's lenders have indicated a term loan B and senior notes, both sized as multiples of FY2026 budget EBITDA (terms below). Before your technical interview, the partner wants your view of the business and a simple model that answers one question: what enterprise value should the fund offer, and which assumptions does that answer rest on?
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