Equity Sale Financial Model – Excel XLSX

VIDEO DEMO

BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT

1. Determine indicative valuation of business
2. Model equity sale proceeds and run scenario analyses
3. visualise equity sale outputs

PRIVATE EQUITY EXCEL DESCRIPTION

Editor Summary Equity Sale Financial Model is an XLSX financial model (with supplemental XLSX) for analysing equity sale transactions; it includes 8 workbook tabs, 5-year projected financial statements, DCF and comparative valuation approaches, ratio analysis, charts, a checks dashboard, and 3 scenario strands for offer discounts and fees. Read more Built by former Deloitte financial modeling professionals, accountants, and CFA charterholders (used by 4,000+ clients), the file is editable, not password-protected, and sold as a digital download on Flevy with immediate digital download.

Use this model when owners or advisors need to quantify the financial impact of selling equity — common in M&A, succession planning, or raising growth capital.

  Business shareholders calculating gross and net equity sale proceeds, primary vs secondary share allocations, and post-sale ownership dilution for negotiating offers.
  Financial institution or private investor analysts modelling post-sale returns using DCF and comparative company inputs to set bid price.
  Corporate finance teams or advisers preparing 5-year pro forma income statements, balance sheets, cash flows, and ratio comparisons pre- and post-sale.

The model’s combination of DCF plus comparative valuation, scenario testing, and pro-forma projection follows established financial modelling best practices associated with Deloitte-style modelling.

MODEL OVERVIEW

An equity sale of a business involves the transfer of ownership by selling shares or ownership interests in the company to a buyer. In this type of transaction, the buyer acquires part or all of the business itself. Equity sales are common in mergers and acquisitions, succession planning, or when raising growth capital.

Our comprehensive equity sale financial model is designed for business shareholders seeking to sell equity stakes to financial institutions or private investors. It provides them with a structured framework to project and analyse the financial outcomes of an equity sale. Specifically, it equips users to:
· Determine indicative valuation of the business: Utilise discounted cash flow (DCF) and comparative analysis methods to determine the company's intrinsic value and the ideal equity offer price.
· Model Equity Sale Proceeds: Calculate gross and net equity sale proceeds, incorporating primary and secondary share allocations as well as fees.
· Determine Ownership Changes: Assess the impact of the equity sale on ownership structures and issued share capital.
· Evaluate Post-Sale Valuations: Analyse post-sale valuations after investing the proceeds, providing insights into returns for both existing and new shareholders.
· Compare pre and post sale Financial Metrics for the business: Contrast key financials and ratios pre- and post-sale to gain a clearer understanding of the impact of any primary share allocations.
· Run Scenario Analyses: Explore various scenarios for key equity sale variables to assess potential impacts and prepare for uncertainties.

This model adheres to best practices in financial modelling, incorporating clear instructions, checks, and input validations to ensure accuracy and ease of use.


KEY OUTPUTS

•  Key equity sale outputs including offer price, valuation, gross and net equity sale proceeds, issued share capital and post-sale ownership and returns
•  Valuations pre and post sale to determine ideal offer price, impact of equity sale and returns for new and existing shareholders
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) across 5 years presented on a yearly basis for the company pre and post sale;
•  Ratio Analysis based on projected financial statements
•  Charts comparing pre and post sale key financial metrics and ratios


KEY INPUTS

Setup Inputs:
•  Names of transaction and company;
•  Currency;
•  Equity sale date;
•  Companies for comparative analysis;
•  Naming for current and new shareholders
•  Naming for equity sale scenarios;

Assumptions:
•  Latest P&L and balance sheet actuals;
•  Forecast income statement and balance sheet assumptions with and without equity sale primary share proceeds
•  Valuation inputs including key financials for comparative companies, discount rates and terminal growth rates;
•  Equity sale assumptions including offer price discounts, primary and secondary share and expected Equity sale fees under 3 scenarios.
•  Pro-forma opening balance sheet adjustments.


MODEL STRUCTURE

The model comprises of 8 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs which include ‘i_Setup' for model and transaction general assumptions and ‘i_Pre_Sale for specific projection assumptions relating to the company pre-equity sale and ‘i_Sale_Assump' for the detailed equity sale assumptions. The calculation tabs uses the user-defined inputs to calculate and produce the projection outputs which are presented in the calculation tabs and ‘o_Dashboard' tab.


KEY FEATURES

•  The model follows good practice financial modelling guidelines and includes instructions, checks and input validations to help ensure input fields are populated accurately;
•  The model enables the user to prepare projections across 5 years and valuations for the business on a pre and post-sale basis;
•  The model includes the possibility to model 3 scenarios for key equity sale assumptions including offer discount rates, equity sale fees and expected changes in projections post sale.
•  The model is not password protected and can be modified as required following download;
•  The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
•  Apart from projecting revenue and costs the model includes the possibility to model receivables and payables, inventory, fixed assets, borrowings, dividends and corporate tax;
•  Business name, currency, timeline and equity sale date are fully customisable;
•  The model included valuations on both discounted cash flow basis (DCF) and comparative analysis basis with user-define weights for each approach;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.


SUPPORT / MODIFICATIONS

We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the website or contact us on:

We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review

TOPIC FAQ

What valuation methods are commonly used to price an equity sale?

Equity sales are typically valued using discounted cash flow (DCF) to estimate intrinsic value and comparative company analysis to benchmark market multiples. Models often allow user-defined weights between DCF and comparatives; the Equity Sale Financial Model explicitly supports both DCF and comparative approaches with user-defined weights.

How do I model the proceeds and fees from an equity sale?

Model gross proceeds from primary and secondary share allocations, then subtract transaction fees and taxes to arrive at net proceeds. The Equity Sale Financial Model calculates gross and net equity sale proceeds and allows fee assumptions under 3 scenarios for sensitivity analysis.

What’s the best way to show ownership changes after an equity sale?

Build an issued share capital table that updates pre- and post-transaction share counts and ownership percentages, reflecting primary allotments and new shareholders. This model produces post-sale ownership and issued share capital outputs to quantify dilution and new stakeholder stakes.

How many years of forecasts should equity-sale models include for valuation purposes?

Valuations commonly use multi-year projections to support DCF terminal value assumptions; five-year explicit forecasts are standard for many sell-side models. The Equity Sale Financial Model provides projected income statement, balance sheet, and cash flow statements across 5 years.

What features should I look for when buying an equity sale financial model?

Look for editable Excel files, built-in checks and input validations, scenario testing for offer price and fees, DCF and comparable valuation support, and clear instructions. The product should also include pro-forma financials and a checks dashboard; the model here has 8 tabs and a checks dashboard.

How can scenario analysis be structured for offer price and fee uncertainty?

Create multiple scenarios varying offer discounts, equity sale fees, and post-sale projection assumptions to compare outcomes. The model supports 3 scenario cases for offer discounts, fees, and expected post-sale projection changes to facilitate such comparisons.

If I need to compare pre- and post-sale financial performance, what outputs are useful?

Useful outputs include pre/post projected income statements, balance sheets, cash flows, ratio analysis, and comparative charts to highlight changes in profitability, leverage, and cash generation. The Equity Sale Financial Model produces pre- and post-sale financials, ratio analysis, and comparison charts.

What audit and modification support should I expect when using a purchased model?

Expect models to include formula checks, input validations, and audit review notes; some vendors offer support or bespoke modifications. This model is reviewed with specialised audit software, includes instructions and checks, and the author offers assistance and bespoke modification support via hello@useprojectify.

Source: Best Practices in Private Equity, Integrated Financial Model Excel: Equity Sale Financial Model Excel (XLSX) Spreadsheet, Projectify