Working on my first LBO case study for a Corp Dev/M&A role. Firm has sent me a CIM and asked me to prepare 10yr Base Case projections to stress test: 1) Purchase Price, 2) EBITDA CAGR, 3) Exit Multiple, 4) Leverage.
In showing the above sensitivity tables, they are looking for the resulting Levered IRR and Unlevered IRR as the ultimate factor to evaluate.
Below is my first attempt to showcase Lev/Unlev FCF (and calculated IRR). Wanted to make sure I wasn't missing anything as my sensitivity tables are looking weird and it's being driven by my Lev/Unlev FCF calculations. As a reference, within 10yrs I assume the amortizing senior debt will be repaid (5y term) and dividends will start to be paid out of FCF to keep minimum cash balance.
Can someone confirm that my tired brain isn't missing something?