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Mid-Market Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Build an eyecare LBO with online and telesales revenue, PIK notes and a dividend recapitalisation in 2028.
Build an eyecare LBO with online and telesales revenue, PIK notes and a dividend recapitalisation in 2028. You have four hours and a template. Complete the purchase accounting, three statements and debt schedule, then calculate returns using the dated recap cash flows.
Oldacre's founding family has agreed to sell the company to the fund at 9.5x 2025 EBITDA of £52m, on a cash-free, debt-free basis, with completion on 31 December 2025. The fund will finance the deal with PIK notes and a fixed-rate senior loan, and plans to re-lever the business to 5.5x EBITDA at the start of 2028 and pay the proceeds out as a dividend. The investment committee wants to see the fund's IRR and multiple of money for exits at the end of each year from 2026 to 2030, and how the 2030 returns move with the entry and exit multiples.
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