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Technology Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Build a three-statement LBO for a coding-robot business and compare returns across three operating cases.
Build a three-statement LBO for a coding-robot business and compare returns across three operating cases. You have three hours, an opening balance sheet and the assumptions. Model hardware and app revenue, PIK debt, the cash sweep and management rollover.
The deal closes on 31 December 2025 at 5.5x 2025 EBITDA. Quarrendon has no debt and no cash on its balance sheet, so the enterprise value is also the price paid for the shares. The management team owns 12% of the company today and will roll 40% of its stake into the new structure; the fund provides the rest of the equity.
The investment committee wants to see the company's performance and the fund's returns under three operating cases (a base case, an upside and a downside), selected by a single switch, over a five-year hold ending on 31 December 2030. The pack gives you the operating, financing, purchase and exit assumptions in one input block, and the balance sheet at 31 December 2025 before the transaction; the conventions the model answer uses are set out under Format and rules below. There is no model skeleton: you build everything yourself.
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