Bridge · LBO returns calculator

Acquire at 8.0x EBITDA (€80.0m), funded 61% debt / 39% equity; exit after 5 years at 8.0x, for 20.6% IRR, 2.55x MoM.

Returns

IRR: 20.6%Base case
MoM: 2.55xBase case
Equity invested: €31.6mBase case
Equity at exit: €80.7mBase case

Entry leverage 5.0x, Year-1 interest coverage 3.0x

Sources & Uses

Uses	€m
Purchase price (EV)	80.0
Transaction fees	1.6
Total uses	81.6

Sources	€m
Debt	50.0
Equity	31.6
Total sources	81.6

Debt paydown

Debt paydown: debt and cash at the end of each year, in € millions, with leverage.
Year	Debt	Leverage (debt / EBITDA)
Year 0	50.0	5.0x
Year 1	46.4	4.4x
Year 2	42.4	3.8x
Year 3	37.7	3.2x
Year 4	32.4	2.6x
Year 5	26.4	2.0x

Value creation bridge

Percentages show each step’s share of the value created (€49.1m in this case). Figures may not sum due to rounding.

Value creation bridge: from equity invested to equity at exit, in € millions.
Step	€m	Share of value created
Equity invested	31.6
EBITDA growth	27.1	55%
Multiple expansion	–
Debt paydown	23.6	48%
Fees	(1.6)	−3%
Equity at exit	80.7

Sensitivity

Entry

Exit

IRR by entry multiple (rows) and exit multiple (columns). Shading compares each cell with the centre of the grid; the current case is marked. Use the arrow keys to move between cells (at the edge they move the range by 0.5x) and Enter to apply a cell's multiples.
Entry multiple by exit multiple	Exit 7.0x	Exit 7.5x	Exit 8.0x	Exit 8.5x	Exit 9.0x
Entry 7.0x
Entry 7.5x
Entry 8.0x
Entry 8.5x
Entry 9.0x

Each cell re-runs the full model with only the two multiples changed. Shading compares each cell with the centre of the grid: green higher, red lower. The outlined cell is the current case; select another to apply its multiples.

Projection

Projection by year, Year 0 to Year 5. Money in € millions; deductions in parentheses; a dash means exactly zero, and interest coverage shows a dash when there is no interest.
€m	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	50.0	53.0	56.2	59.6	63.1	66.9
EBITDA	10.0	10.6	11.2	11.9	12.6	13.4
EBITDA margin	20.0%	20.0%	20.0%	20.0%	20.0%	20.0%
D&A		(1.6)	(1.7)	(1.8)	(1.9)	(2.0)
EBIT		9.0	9.6	10.1	10.7	11.4
Interest		(3.5)	(3.3)	(3.0)	(2.6)	(2.3)
EBT		5.5	6.3	7.2	8.1	9.1
Tax		(1.7)	(1.9)	(2.1)	(2.4)	(2.7)
Net income		3.9	4.4	5.0	5.7	6.4
D&A (add-back)		1.6	1.7	1.8	1.9	2.0
Capex		(1.6)	(1.7)	(1.8)	(1.9)	(2.0)
ΔNWC		(0.3)	(0.3)	(0.3)	(0.4)	(0.4)
FCF		3.6	4.1	4.7	5.3	6.0
Debt (end of year)	50.0	46.4	42.4	37.7	32.4	26.4
Cash	–	–	–	–	–	–
Leverage	5.0x	4.4x	3.8x	3.2x	2.6x	2.0x
Interest coverage		3.0x	3.5x	4.0x	4.8x	5.9x

Figures may not sum due to rounding.