Port M&A , PE View

Hello. I am modeling a potential 100% acquisition of a port in Europe by a private equity firm. The port is fully contracted for more than 25 years and is already operational.

How should I approach this from a private equity perspective?

I have already modeled the port's NPV using an FCFE approach discounted at a 12% cost of equity, so the asset valuation is effectively complete.

My understanding is that the next step is to build a PE returns model by:

• Using the acquisition equity value as the initial cash outflow;
• Using the annual free cash flows to equity as interim cash inflows;
• Assuming an exit value based on an EV/EBITDA exit multiple in a selected exit year, with net debt adjustments as appropriate;
• Including the resulting equity proceeds from the exit as the final cash inflow.

Would this framework then allow me to calculate the sponsor's IRR and MOIC, at least on a high-level basis?