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Large Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Build an integrated three-statement model, DCF and LBO for a listed engineering business, then assess the offer price and credit risks.
Build an integrated three-statement model, DCF and LBO for a listed engineering business, then assess the offer price and credit risks. You have two hours and a blank spreadsheet. The financing includes bank debt, subordinated debt and PIK notes.
You are an associate on the deal team. The fund has put a £24.00 per share proposal to the board of Dunmarsh, a premium of 29.7% to the current share price. Before the investment committee meets, the partner wants three things from you: an integrated five-year operating model of the business after the buyout, an intrinsic valuation, and the fund's returns under the proposed capital structure, together with a view on how well the business can carry that debt.
You receive a one-file candidate pack with the operating assumptions, the opening balance sheet and the financing terms. There is no model skeleton: you build everything yourself.
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