DESCRIPTION
The Acquisition & Valuation Pack puts three Basecase models behind one decision: whether to buy a small business, at what price, and how to get through the first quarter after completion. It combines the Small Business Acquisition Underwriting Model, the FCFE Valuation Model and the 13-Week Rolling Cash Flow Forecast.
What it does: the acquisition model underwrites the deal the way a lender will, with an SBA 7(a)-style structure, an optional seller note, a 120-month amortization schedule, five years of projections, DSCR against a 1.25x threshold, and buyer returns: cash-on-cash plus a pre-tax equity IRR and MOIC from a hold-and-exit to a multiple of SDE, net of exit costs and the loans still owed. The FCFE Valuation Model values the equity directly by discounting five years of free cash flow to equity at a CAPM cost of equity, adds a Gordon-growth terminal value and shows value per share across cost of equity and terminal growth. The 13-Week Rolling Cash Flow Forecast projects weekly receipts and payments with a working-capital facility that draws and repays automatically, so you can see closing cash and facility headroom every week.
How the models connect: they are three separate workbooks with no links between files. The acquisition model tells you whether the debt can be serviced at the agreed price. The FCFE model gives you an independent view of what the equity is worth, built from your own revenue, margin, capex and working-capital assumptions for the same business, so you can see whether the price is supported by cash flow rather than by a multiple alone. Once the deal is done, the acquisition model's monthly SBA payment and your opening cash at completion become inputs to the 13-week forecast, which shows whether the business can meet payroll, suppliers and debt service in its first thirteen weeks under new ownership. The 13-week model has no dedicated loan line, so enter each loan payment as a one-off item in the week it falls due.
Main features: 2,388 live formulas across the three files; monthly amortization of the senior loan and a seller note; DSCR with a PASS / REVIEW lender test and a price-multiple vs interest-rate grid; pre-tax buyer equity IRR and MOIC with five return checks; a full FCFE bridge with eight integrity checks; a draw-and-sweep revolver with weekly headroom; and worked examples preloaded.
How to work with it: in each workbook change only the blue input cells, starting with the yellow key drivers. Black and green cells are formulas. The built-in checks should read OK (or BALANCED and PASS) before you rely on an output.
Why you need it: a lender approves a deal on debt service, a buyer should pay on value, and the business still has to survive the handover. Working through all three stops a deal that services on paper from failing on price or on cash. The pack is priced below the three models bought separately, and each workbook is identical to its individual listing.
Every file is fully unlocked with every formula visible. Currency-agnostic; treat $ as your currency. For analysis only, not lending, investment or financial advice.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form.
Source: Acquisition & Valuation Pack - SBA, FCFE, 13-Week Cash () Document, g59076599o70
THERE ARE 3 PRODUCTS IN THIS BUNDLE:
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The FCFE Valuation Model values the equity of a business directly. Because free cash flow to equity is already after interest and after net borrowing, discounting it at the cost... [read more]
Individual Price: $59.00
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The 13-Week Rolling Cash Flow Forecast is the instrument every cash-tight or turnaround business runs on, built to a standard a restructuring professional would recognise. It... [read more]
Individual Price: $59.00
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The Small Business Acquisition Underwriting Model lets you underwrite a search-fund or owner-operator acquisition the way the lender financing it will. Enter the target's... [read more]
Individual Price: $89.00
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