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Large Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Complete a guided take-private LBO for a foodservice distributor and assess whether the proposed offer meets the return target.
Complete a guided take-private LBO for a foodservice distributor and assess whether the proposed offer meets the return target. The two-hour template covers the offer price, financing, operating forecast and returns. Use the sensitivities to assess how much the buyer can pay.
Ravenstow's shares trade at £4.60, which values the business at about 6.1x 2025 EBITDA once its £510m of net debt is included. The deal team believes the board will only recommend an offer at a premium of at least 30%, in line with recent UK take-privates.
The fund would refinance Ravenstow's existing net debt at closing on 31 December 2025, borrow 4.75x 2025 EBITDA through a senior term loan and subordinated debt, and invest the balance as equity. Its investment committee requires an IRR of at least 20% over a five-year hold. Before the committee meets, the partner wants answers to two questions:
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