Main  /  Members  /  Demo Company  /  Private Equity Scenario #1a-1
Step 1. Review / change financial forecast assumptions:  
  a. Review / change financial forecast key assumptions
  b. Review / change all financial forecast assumptions
Step 2. Enter dollar amount of equity and / or subordinated debt financing desired.  
  a. Gross dollar amount of Common Stock (or Contributed Capital, as appropriate) financing desired $   
  b. Gross dollar amount of Preferred Stock financing desired $   
  c. Gross dollar amount of Subordinated Debt financing desired $   
Step 3. Review / change analysis criteria.  
  a. The annual rate of return on Common Stock or Preferred Stock investment (ROR) objective of the investor(s) (an ROR objective between 20% and 40% is customary.) %
  b. The annual rate of return on Subordianted Debt investment (ROR) objective of the subordinated debt investor (an ROR objective between 18% and 24% is customary.) %
  c. Your estimate of the EBITDA multiple to be used to determine the gross value of the business four years after the recapitalization (an EBITDA multiple estimate between 5.0 and 8.0 is customary.)    
  d. Your estimate of the interest rate to be paid on subordianted debt (an annual "current pay" rate between 8% and 12% is customary.) %
Step 4. Save changed estimates from Steps 2 and 3.    
Step 5. Review private equity placement at end of first forecast year. PDF HTML
  a. Review / print Private Equity Placement - Summary   HTML
  b. Review / print Income Statement   HTML
  c. Review / print Balance Sheet   HTML
  d. Review / print Cash Flow Statement   HTML
  e. Review / print Principal Assumptions/Relationships Report   HTML
  f. Review / print Financial Feasibility Report   HTML
  g. Review / print Financial Management Report   HTML