Bridgepoint Mock Case Study – Veterinary roll-out

At a glance

Model a veterinary-practice buyout and compare owned and franchised expansion, including how many annual cohorts to open. You have four hours and a template. Build the operating model, purchase price allocation, three statements and LBO, then compare returns on a 2030 exit.

The brief

Sallowby's owners are prepared to sell the group to the fund on a cash-free, debt-free basis at 7.5x 2025 EBITDA, with completion on 31 December 2025. Management's plan is to open new practices in five cohorts from 2026 to 2030. The board is also considering a different route for the roll-out: letting partner vets open the new sites as franchisees, with Sallowby collecting a fee on their revenue instead of paying for the fit-out and running costs.

The investment committee wants three answers before the fund commits. What does the fund earn if it sells at the end of 2030, and how sensitive is that to the entry and exit multiples? Should the new practices be owned or franchised? And is it better to open all five cohorts, fewer, or none at all? You have the financing terms, a SONIA forward curve and a pre-formatted model template with every input already entered.