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Bulge-Bracket Investment Bank
An independent practice case, not supplied or endorsed by the named firm.
Build a whisky-producer LBO with purchase accounting and PIK mezzanine, then assess the sponsor's returns and the debt structure.
Build a whisky-producer LBO with purchase accounting and PIK mezzanine, then assess the sponsor's returns and the debt structure. You have 45 minutes and a blank spreadsheet. Include a value creation bridge and sensitivities to the entry and exit multiples.
You are interviewing for a place in the bank's leveraged finance team. A private equity client has asked the bank to arrange the debt for its proposed buyout of Tresham Distillers Ltd, and the deal team wants an LBO to test the sponsor's returns and the capital structure before the next call.
The transaction is cash-free and debt-free and completes on 31 December 2025, the end of Tresham's last financial year. The sponsor plans to hold the business for five years and sell it at the end of 2030. Tresham's management team will roll over part of their proceeds and invest alongside the sponsor on the same terms.
Everything you need is below. There is no template: build the model from a blank sheet.
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