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Private Equity

Exam 2: T4 2020

Comprehensive exam-oriented quiz based exactly on the Private Equity T4 2020 exam and solution file.

Question 13 of 14

Case

Target Umbrellas

Expand / collapse

Target is a leading Portuguese manufacturer of umbrellas, selling exclusively to Portugal and Spain through a network of distributors. It records sales of €150 mln, EBITDA of €20 mln and financial debt of €50 mln.

You work for a Fund acquiring the company for an EV/EBITDA of 10x. The transaction will be financed through a 50/50 Debt-to-Equity split (to the total Sources & Uses) and debt equally distributed between term loans A, B and C. Fees amount to 2% and the management of the company gets a 20% stake and invests €5 mln.

Complete the following Sources & Uses table, presenting all your calculations.

Fill the amount cells. Enter just the number (without €mln).

Complete the exercise: Fill the amount cells. Enter just the number (without €mln).
Sources of Funds (€mln)AmountUses of Funds (€mln)Amount
Debt
EV
Term Loan A
Term Loan B
Fees
Term Loan C
Equity
Preferred Shares
Ordinary Shares
Sweet Equity
Fund
Total Sources
Total Uses