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Mid-Market Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Model a restaurant buyout with new openings, management equity and a seller note linked to exit EBITDA.
Model a restaurant buyout with new openings, management equity and a seller note linked to exit EBITDA. You have two hours to build the three statements and LBO from a blank spreadsheet. Compare the base case with lower sales per restaurant and calculate how exit proceeds are shared.
You are an associate at a PE fund. Rushgarth's founders approached the fund in 2025 about a sale, and the fund has agreed to pay 6.0x 2025 EBITDA on a cash-free, debt-free basis. The deal closes at the end of 2025, so 2026 is the fund's first year of ownership. The founders will reinvest alongside the fund, and part of the price is a contingent seller note, paid at exit only if 2030 EBITDA clears an agreed threshold.
Before the investment committee meets, the partner wants a working model: projected financial statements for 2026 to 2030 under the proposed capital structure, the fund's cash-on-cash return on an exit at the end of 2030, how that return moves with the exit multiple and with sales per restaurant, and how quickly the business pays down its debt.
You receive this brief and a one-file candidate pack: its Data sheet holds the working-capital assumptions and Rushgarth's pre-transaction balance sheet at 31 December 2025. You build everything else yourself.
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