← Back to Cover
	BEST CASE SCENARIO — 10-Year Financial Projections
	Optimistic assumptions: higher growth, better margins, faster synergy realization, premium exit
	($mm unless noted)	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
	INCOME STATEMENT
	Revenue	$900	$972	$1,050	$1,134	$1,224	$1,322	$1,428	$1,542	$1,666	$1,799	$1,943
	Revenue Growth (%)		8.0%	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%
	Synergy Revenue	-	$33	$65	$65	$65	$65	$65	$65	$65	$65	$65
	Total Revenue	$900	$1,005	$1,115	$1,199	$1,289	$1,387	$1,493	$1,607	$1,731	$1,864	$2,008
	EBITDA Margin (%)	0.28	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32
	EBITDA	$252	$311	$336	$363	$392	$423	$457	$494	$533	$576	$622
	Cost Synergies	-	$40	$80	$80	$80	$80	$80	$80	$80	$80	$80
	Total EBITDA	$252	$351	$416	$443	$472	$503	$537	$574	$613	$656	$702
	(-) Depreciation & Amortization	$35	$35	$35	$35	$35	$35	$35	$35	$35	$35	$35
	EBIT	$217	$316	$381	$408	$437	$468	$502	$539	$578	$621	$667
	(-) Taxes	$54	$79	$95	$102	$109	$117	$126	$135	$145	$155	$167
	NOPAT	$163	$237	$286	$306	$328	$351	$377	$404	$434	$466	$500
	FREE CASH FLOW
	NOPAT	$163	$237	$286	$306	$328	$351	$377	$404	$434	$466	$500
	(+) Depreciation & Amortization	$35	$35	$35	$35	$35	$35	$35	$35	$35	$35	$35
	(-) Capital Expenditures	$36	$40	$45	$48	$52	$55	$60	$64	$69	$75	$80
	(-) Change in Net Working Capital	-	$8	$9	$7	$7	$8	$8	$9	$10	$11	$12
	(-) Integration / Restructuring Costs	$28	$21	$21	-	-	-	-	-	-	-	-
	Unlevered Free Cash Flow	($2,200)	$202	$246	$286	$304	$323	$343	$365	$389	$415	$443
	Cumulative FCF	($2,200)	($1,998)	($1,751)	($1,465)	($1,161)	($838)	($495)	($130)	$260	$675	$1,118
	DCF VALUATION & RETURNS
	Discount Factor	1	0.9259	0.8573	0.7938	0.7350	0.6806	0.6302	0.5835	0.5403	0.5002	0.4632
	PV of Free Cash Flow		$187	$211	$227	$223	$220	$216	$213	$210	$208	$205
	Terminal Value (Exit Multiple)											$8,421
	PV of Terminal Value											$3,901
	Implied Enterprise Value	$6,023
	NPV (EV - Purchase Price)	$3,823
	IRR (%)	7.3%
	MOIC (x)	1.51x
	Payback Period (Years)	7.3
	Exit EV/EBITDA (x)	12.0x
	Yr 1 Accretion / (Dilution)	-90.8%
	Note: Best Case uses optimistic Assumptions (column K). Higher growth, better margins, faster synergy capture, premium exit multiple. Sample data.