What acquisition price, sources and uses, and sponsor economics create a credible transaction case?
Model profile
Private Placement
Price and test a private placement of shares: what the company is worth before it raises, what the investors pay and own, what the company does with the money, and what each shareholder gains or gives up. The default case is a fictional East African dairy and juice processor raising 12 million US dollars from four professional investors, in new shares and in shares sold by a growth equity fund, with an upsize option, under upside, base and downside scenarios.
Decision scope
Questions this model helps you examine
How do operating projections, cash generation, and debt paydown support the proposed capital structure?
How do exit timing, exit multiples, and downside cases affect sponsor returns and value per share?
Model capabilities
What this model includes
The profile below is generated from the same catalogue and workspace definitions used by the application.
- Reads annual reports, management accounts, the business plan, share register, term sheet, engagement letter, articles and peer data into the model after review, or an Excel template without AI
- Checks what was read: balance sheets, reserves, reported totals, the share register, conflicts between documents and year-to-date trading
- Three reported years analysed with red flags, and a five-year three-statement forecast without the placement
- Pre-money value from a DCF and peer multiples, with a discount for lack of marketability
- Offer price at a discount or premium to intrinsic value, set by scenario
- New and existing shares, and an upsize option capped at 15 per cent
- Placement agent commission, incentive fee and fixed costs, accounted for under IAS 32
- Use of proceeds: a capital project, debt repaid at close and cash
- The forecast with the placement, a pro forma balance sheet and sources and uses
- Cap table before and after, with each shareholder's cash, value and gain
- New investors' IRR and money multiple to an exit multiple, dilution and EPS
- Investor scorecard and checks, including pre-emption rights, the control threshold and the private-offer limit
- A live Excel model that recalculates the forecast, valuation, offer price and shares, with an assumptions book
- Starts from the company's documents: up to ten read by the AI into every page, product lines included, with what they did not cover marked red
- Calendarised and forward peer multiples, beta from the peers, recent rounds and comparable placements, and a reverse DCF
- Adjusted EBITDA from a quality-of-earnings bridge, and a fully diluted cap table
- Preference shares, anti-dilution, warrants and redemption, with the exit waterfall
- Exit routes with probabilities, returns in the investors' currency after tax, and a Monte Carlo
- Covenant headroom, an 18-month cash flow, product lines with capacity, and what happens if the raise falls short
- Investor pack, tear sheet and draft term sheet; versions and sign-off; jurisdiction rules; impact and ESG
- Scenarios side by side, sensitivity grids, a football field and a value tornado
Build the case
Inputs and workspaces
- DocumentsStart here: up to ten documents read by the AI into every page of the model, with what they did not cover marked red
- CasesLoad the growth raise, a larger secondary sale, an all-primary deleveraging raise or no upsize
- Company and offeringCompany, currency, close, offering size, new and existing shares, upsize option, scenario and fixed costs
- Reported statementsThree years of income statement and balance sheet
- Standalone forecastGrowth, margin, costs, capital spending, working capital, tax, debt and dividends without the placement
- Product linesVolume, price, margin and capacity for each product line, and the capacity the project adds
- Earnings and dilutionQuality-of-earnings adjustments to EBITDA, and the options, warrants and convertibles in the fully diluted shares
- Use of proceedsCapital project, debt repaid at close, and what the project adds to revenue, margin and costs
- ScenariosOffer discount, fees and project delivery under upside, base and downside
- Shareholders and investorsExisting shareholders, the sellers, and the investors who buy
- Listed peersPeer EV / revenue, EV / EBITDA and P/E multiples
- ValuationCost of capital, blending, marketability discount, the investors' exit and governance limits
- Investor termsPreference shares, liquidation preference, dividend, anti-dilution, warrants, redemption, drag and tag
- Exit routesTrade sale, listing, secondary sale and redemption, with their years, multiples and probabilities
- Currency and taxThe investors' currency, withholding tax, capital gains tax, stamp duty and the Monte Carlo
- Lender viewCovenant limits, the revolving facility, seasonality and the build-out period
- Impact and ESGJobs, suppliers, gender, emissions and the IFC Performance Standards
- GovernanceVersions, the assumptions that changed between them, and sign-off
- Investor documentsLive Excel model, investor pack with teaser, tear sheet, information memorandum section and draft term sheet
Review the result
Outputs and analysis
- Offer price per shareReporting currency
- Intrinsic value per share, beforeDCF and comparables, after the marketability discount
- Intrinsic value per share, afterWith the placement and its use of proceeds
- Change in value per shareFor existing shareholders
- Gross proceedsBase offering and upsize
- Net proceeds to the companyAfter the company's costs
- Placement costsOf gross proceeds
- DilutionNew shares over shares after
- 19 additional metrics in the workspace
- Financial statementsDetailed schedules
- Offering, cap table and valuationDetailed schedules
- Scenarios and sensitivitiesDetailed schedules
Designed for review
Who this model is for
- Private-equity sponsors and corporate development teams
- Investment and financial analysts
- Transaction advisers
- Investment committees and lenders
Governed evidence
The review trail stays with the result.
Each completed calculation preserves the model version, saved inputs, reporting-currency snapshot, immutable run, and result fingerprint used for its reports.
- Version-controlled calculation logic
- Saved assumptions and scenarios
- Immutable calculation runs
- Reporting context preserved in exports
Ready to explore the case?