Merger Assumptions for Online Company Inc & Brick 'n' Mortar Co

Assumptions

Transaction Inputs Scenarios

Acquirer Name Online Company Inc Scenario #
Target Name Brick 'n' Mortar Co
Acquirer Share Price $11.75 Synergies
Target Share Price $17.30 Revenue enhancement
Transaction Close Date 9/30/2025 COGS savings
Financial Reporting Units $ 000s Marketing savings
Currency USD General & Admin savings

Restructuring Charges 2,000 Synergies in Year 1 (full yr.)

Equity Issuance Fees 3.0% Synergies in Year 2
Debt Issuance Fees 3.0% Synergies in Years 3+
Other Closing Costs 2,000
Financing
Replace Target Debt (select the Options) No Debt Tranche
Replace Acquirer Debt (select the Options) Yes Senior Debt A
Senior Debt B
Acquirer FD Shares Outstanding 50000 Subordinated Debt
Target FD Share Outstanding 25000 Interest Rate
Shares Issued Senior Debt A
Pro Forma Shares Outstanding Senior Debt B
Subordinated Debt
Share Issuance Discount 1.00%
Share Issuance Price
Transaction
Takeover Premium
Purchase Price Cash Consideration
Target Share Price $17.30
Takeover Premium 20.0%
Offer Price $20.76
Sources & Uses of Cash
Acquirer Share Price $11.75 Sources of Cash
Share Exchange Ratio 1.767 Cash
Stock Issued
Target Shares Outstanding 25,000 Debt Issued
Offer Price $20.76
Purchase Price 519,000
Target Debt 16,801
Target Cash 72,615
Enterprise Value 463,186 Total Sources

Goodwill and Purchase Price Allocation

Fair Market Value Book Value Fair Value Adjustment
Inventory & Other Current Assets 8,380 168,354.00 159,974
Target PP&E 22,170 95,854.00 73,684
Identifiable Intangibles
Net Identifiable Assets 233,657

Closing Balance Sheet

Pro Forma Consolidated Balance Sheet

Step # 1 2 3
Acquirer Target Fair Value
9/30/2025 9/30/2025
Assets
Cash 153,652 72,615
Accounts Receivable 8,179 5,853
Inventory 15,267 8,380 159,974
Current Assets 177,098 86,848
Property & Equipment 43,127 22,170 73,684
Goodwill - -
Total Assets 220,225 109,019

Liabilities
Short Term Debt - -
Accounts Payable 7,061 4,358
Current Liabilities
Long Term Debt 30,000 16,801
Total Liabilities 37,061 21,159
Shareholder's Equity
Equity Capital 70,000 39,203
Retained Earnings 113,164 48,657
Shareholder's Equity 183,164 87,860
Total Liabilities & Shareholder's Equity 220,225 109,019

Check 0.000 0.000

Accretion/Dilution Analysis

Earnings Per Share

Acquirer Net Earnings
Target Net Earnings
Pro Forma Net Earnings

Acquirer Shares O/S

Target Share O/S
Pro Forma Shares O/S

Acquirer EPS
Target EPS
Pro Forma EPS

Accretion/Dilution

Cash Flow Per Share

Acquirer Cash Flow
Target Cash Flow
Pro Forma Cash Flow

Acquirer Shares O/S

Target Share O/S
Pro Forma Shares O/S

Acquirer CFPS
Target CFPS
Pro Forma CFPS

Accretion/Dilution
Summary & Sensitivity

Share Price Impact

Offer Price Market Price DCF Model
Target Price per Share
Acquirer
Acquirer Price per Share
Pro Forma Price per Share
Change in Acquirer NPV per Share

Implied Share Price Change

Takeover Premium

Rev Enhance
 LIVE --> 3 1 2 3 4

nue enhancement 6,000 5500 6,000 6,000 6,500

875 875 875 875 875
eting savings 1,250 1250 1,250 1,250 1,250
ral & Admin savings 1,000 1000 1,000 1,000 1,000

gies in Year 1 (full yr.) 30% 0.3 0 0 0

gies in Year 2 65% 0.65 1 1 1
gies in Years 3+ 100% 1 1 1 1

100,000 0 100,000 100,000 100,000

50,000 0 - 50,000 50,000
rdinated Debt - 0 - - 25,000

5.50% 0.055 0 0 0
5.75% 0.0575 0 0 0
rdinated Debt 8.25% 0.0825 0 0 0

over Premium 20.0% 0.15 0 0 0

Consideration 40.0% 0 0 0 1

ces & Uses of Cash

ces of Cash Uses of Cash
103,442 Cash Consideration
311,400 Stock Consideration
150,000 Target Debt - Replace
Acquirer Debt - Replace
Debt Financing Fees
 Equity Financing Fees
Other Closing Costs
564,842 Total Uses

Purchase Price Allocation

Total Purchase Price
Net Book Value of Assets
Excess Purchase Price
Write-off Existing Goodwill
Fair Value Adjustments
Excess Purchase Price After Adjustments
Goodwill

4 5 6 7 8 9
Target PF Purchase Financing Financing Financing Total Adj.
transaction Debt and Equity prop Fees payment Replacing the debt

72,615 (207,600) 150,000 (15,842) (30,000) (30,827)

5,853 5,853
168,354 168,354
143,380
95,854 95,854
197,483 197,483
436,717

4,358 4,358
4,358
16,801 150,000 (30,000) 136,801
141,159
39,203 (39,203) 311,400 311,400
48,657 (48,657) (15,842) (15,842)
295,558
436,717

0.000
 Capital Structure
Current Pro Forma
Equity
Cash
Debt
Enterprise Value

Shares Outstanding
Equity Value/Share

2019 EPS Accretion/(Dilution)

Takeover Premium

Target Sh Price
 5

6,500
875
1,250
1,000

0
1
1

100,000
50,000
25,000

0
0
0

0
1

207,600
311,400
-
30,000
4,500
 9,342
2,000
564,842

The assets have to be taken on market

value if for any particular asset market
value not available then only we will take
book value

519,000
87,860 This is during the stub period
431,140
- If the target company has goodwill existing in the banalce sheet then we will write it ogg here
233,657
197,483
197,483

When merging the banalance sheet,

Calculate the goodwill
Purchase Consideration
10 NAV
Cash, if cash not sufficient then reserves and surplus
Consol When issuing stock the equity will change

Check whether are you getting a loan for the purchase consideration
This is all part of the history of where we are getting the cash for
122,825 purchase consideration
14,032
183,621
320,478 My name is khan sajda
138,981 3statement model
197,483 Stub period calc
Purchase Conc Calc
656,942 Goodwill calc
Then Consolidated Balance Sheet

11,419
4,358
166,801
178,220
381,400
97,322
478,722
656,942

0.000
 Change

um
en we will write it ogg here

eration
for
 Forecast Peri
Pro Forma Model CLOSE 2025 2026
Balance Sheet Check ok ok ok
End of Period 9/30/2025 12/31/2017 12/31/2018
Days in Period 273 92 365
Fraction of Year 0.750 0.250 1.000

Assumptions

Debt Amortization Schedule Check

Senior Debt A 100% 0% 25% 25%
Senior Debt B 100% 0% 0% 20%
Subordinated Debt 100% 0% 0% 0%

Revenue Growth (% Change)

Cost of Goods Sold (% of Revenue)
Marketing, Advertising & Promotion (% of Revenue)

Depreciation & Amortization (% of PP&E) 20.0% 20.0%

Tax Rate (% of Earnings Before Tax) 30.0% 30.0%
Accounts Receivable (Days) 18 18
Inventory (Days) 80 90
Accounts Payable (Days) 37 37

Equity Issued (Repaid) ($000's) - -

Dividends Paid - -

Income Statement

Revenue 41,462 182,434

Cost of Goods Sold (COGS) 27,610 123,968
Gross Profit 13,852 58,466
Expenses
Marketing, Advertising & Promotion 10,933 48,506
General & Administrative
Depreciation & Amortization - -
Interest
Total Expenses
Earnings Before Tax

Taxes
Net Earnings

Balance Sheet

Assets
Cash
Accounts Receivable
Inventory
Current Assets
Property & Equipment
Goodwill
Total Assets

Liabilities
Short Term Debt
Accounts Payable
Current Liabilities
Long Term Debt
Total Liabilities
Shareholder's Equity
Equity Capital
Retained Earnings
Shareholder's Equity
Total Liabilities & Shareholder's Equity

Check 0.0000 0.0000 0.0000

Cash Flow Statement

Operating Cash Flow
Net Earnings
Plus: Depreciation & Amortization
Less: Changes in Working Capital
Cash from Operations

Investing Cash Flow

Investments in Property & Equipment
Investments in Businesses
Cash from Investing

Financing Cash Flow

Issuance (repayment) of debt
Issuance (repayment) of equity
Payment of Dividends
Cash from Financing

Net Increase (decrease) in Cash

Opening Cash Balance
Closing Cash Balance

Supporting Schedules

Working Capital Schedule

Accounts Receivable
Inventory
Accounts Payable
Net Working Capital (NWC)
Change in NWC

Depreciation Schedule
PPE Opening
Plus Capex
Less Depreciation
PPE Closing
Debt Schedule
Senior Debt A
Opening Balance
Addition (Repayment)
Closing Balance

Senior Debt B
Opening Balance
Addition (Repayment)
Closing Balance

Subordinated Debt
Opening Balance
Addition (Repayment)
Closing Balance

Target Debt
Opening Balance
Addition (Repayment)
Closing Balance

Acquirer Debt
Opening Balance
Addition (Repayment)
Closing Balance

Total Debt
Opening Balance
Addition (Repayment)
Closing Balance

Interest Schedule
Interest Rates
Senior Debt A
Senior Debt B
Subordinated Debt
Target Debt
Acquirer Debt
Interest Expense (opening balance)
Senior Debt A
Senior Debt B
Subordinated Debt
Target Debt
Acquirer Debt
Total

DCF Model

Assumptions
Tax Rate
Discount Rate
Perpetual Growth Rate
EV/EBITDA Multiple
Current Price
Shares Outstanding

Discounted Cash Flow Entry 2025 2026 2027 2028 2029 2030 Exit
Date

EBIT
Less: Cash Taxes
NOPAT
Plus: D&A
EBITDA
Less: Capex
Less: Changes in NWC
Unlevered FCF

Transaction FCFF

IRR FCFF
Intrinsic Value Market Value Rate of Return
Enterprise Value Market Cap na IRR
Plus: Cash Plus: Debt
Less: Debt Less: Cash
Equity Value Enterprise Value

Equity Value/Share Equity Value/Share

Merger Integration

Revenue
Acquirer 41,462 182,434
Target 24,276 111,669
Synergies 1,800
Total 65,738 295,903

Cost of Goods Sold

Acquirer 17,414 78,447
Target 10,196 45,784
Synergies - (263)
Total 27,610 123,968

Marketing, Advertising & Promotion

Acquirer 7,049 31,014
Target 3,884 17,867
Synergies (375)
Total 10,933 48,506

General & Administrative

Acquirer 3,750 15,000
Target 1,750 7,000
Synergies (300)
Total 5,500 21,700
 Forecast Period
2027 2028 2029 2030
ok ok ok ok
12/31/2019 12/31/2020 12/31/2021 12/31/2021
365 366 365 365
1.000 1.000 1.000 1.000

25% 25% 0% 0%
20% 20% 20% 20%
0% 0% 0% 100%

20.0% 20.0% 20.0% 20.0%

30.0% 30.0% 30.0% 30.0%
18 18 18 18
100 100 100 100
37 37 37 37

- - - -
- 500 500 500

200,678 218,739 236,238 252,774

137,757 152,588 167,227 178,400
62,921 66,151 69,010 74,374

53,314 57,948 62,684 66,921

 - - - -

0.0000 0.0000 0.0000 0.0000

Terminal Value
EV/EBITDA
200,678 218,739 236,238 252,774
125,069 137,576 148,582 157,497
3,900 6,000 6,000 6,000
329,647 362,315 390,820 416,271

88,298 98,432 108,669 116,276

50,028 55,030 59,433 62,999
(569) (875) (875) (875) (1)
137,757 152,588 167,227 178,400

34,115 37,186 40,160 42,972

20,011 22,012 23,773 25,200
(813) (1,250) (1,250) (1,250)
53,314 57,948 62,684 66,921

15,000 15,000 15,000 15,000

7,000 7,000 7,000 7,000
(650) (1,000) (1,000) (1,000)
21,350 21,000 21,000 21,000
 Historical Results Forecast Peri
Online Company Inc Model 2020 2021 2022 2023 2024 2025 2026
Balance Sheet Check ok ok ok ok ok ok ok
End of Period 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026
Days in Period 366 365 365 365 366 365 365
Fraction of Year 1.000 1.000 1.000 1.000 1.000 1.000 1.000

Assumptions

LIVE SCENARIO 1

SCENARIO 1
Revenue Growth (% Change) 10.0% 10.0%
Cost of Goods Sold (% of Revenue) 42.0% 43.0%
Salaries and Benefits (% of Revenue) 17.0% 17.0%
Rent and Overhead ($000's) 15,000 15,000
Depreciation & Amortization (% of PP&E) 20.0% 20.0%
Interest (% of Debt) 10.0% 10.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0%
Accounts Receivable (Days) 18 18
Inventory (Days) 80 90
Accounts Payable (Days) 37 37
Capital Expenditures ($000's) 15,000 15,000
Debt Issuance (Repayment) ($000's) - -
Equity Issued (Repaid) ($000's) - -
Payment of Dividends - -

SCENARIO 2
Revenue Growth (% Change) 5.0% 4.5%
Cost of Goods Sold (% of Revenue) 37.0% 37.0%
Salaries and Benefits (% of Revenue) 17.0% 17.0%
Rent and Overhead ($000's) 10,000 10,000
Depreciation & Amortization (% of PP&E) 20.0% 20.0%
Interest (% of Debt) 5.0% 5.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0%
Accounts Receivable (Days) 18 18
Inventory (Days) 73 73
Accounts Payable (Days) 37 37
Capital Expenditures ($000's) 15,000 15,000
Debt Issuance (Repayment) ($000's) - -
Equity Issued (Repaid) ($000's) - -
Payment of Dividends - -

LIVE SCENARIO
Revenue Growth (% Change) 10.0% 10.0%
Cost of Goods Sold (% of Revenue) 42.0% 43.0%
Marketing, Advertising & Promotion (% of Revenue) 17.0% 17.0%
General & Administrative ($000's) 15,000 15,000
Depreciation & Amortization (% of PP&E) 20.0% 20.0%
Interest (% of Debt) 10.0% 10.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0%
Accounts Receivable (Days) 18 18
Inventory (Days) 80 90
Accounts Payable (Days) 37 37
Capital Expenditures ($000's) 15,000 15,000
Debt Issuance (Repayment) ($000's) - -
Equity Issued (Repaid) ($000's) - -
Payment of Dividends - -

Income Statement

Revenue 102,007 118,086 131,345 142,341 150,772 165,849 182,434

Cost of Goods Sold (COGS) 39,023 48,004 49,123 52,654 56,710 69,657 78,447
Gross Profit 62,984 70,082 82,222 89,687 94,062 96,193 103,987
Expenses
Marketing, Advertising & Promotion 26,427 22,658 23,872 23,002 25,245 28,194 31,014
General & Administrative 10,963 10,125 10,087 11,020 11,412 15,000 15,000
Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 7,504 9,003
Interest 2,500 2,500 1,500 1,500 1,500 3,000 3,000
Total Expenses 59,390 53,433 52,664 52,066 54,237 53,699 58,017
Earnings Before Tax 3,594 16,649 29,558 37,622 39,825 42,494 45,970

Taxes 1,120 4,858 8,483 10,908 11,598 11,898 12,872

Net Earnings 2,474 11,791 21,075 26,713 28,227 30,596 33,099
Balance Sheet

Assets
Cash 67,971 81,210 83,715 111,069 139,550 159,474 182,573
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 8,179 8,997
Inventory 7,805 9,601 9,825 10,531 11,342 15,267 19,343
Current Assets 80,876 96,715 100,107 128,717 158,430 182,920 210,913
Property & Equipment 45,500 42,350 40,145 38,602 37,521 45,017 51,013
Goodwill
Total Assets 126,376 139,065 140,252 167,319 195,951 227,937 261,927

Liabilities
Short Term Debt
Accounts Payable 3,902 4,800 4,912 5,265 5,671 7,061 7,952
Current Liabilities 3,902 4,800 4,912 5,265 5,671 7,061 7,952
Long Term Debt 50,000 50,000 30,000 30,000 30,000 30,000 30,000
Total Liabilities 53,902 54,800 34,912 35,265 35,671 37,061 37,952
Shareholder's Equity
Equity Capital 70,000 70,000 70,000 70,000 70,000 70,000 70,000
Retained Earnings 2,474 14,265 35,340 62,053 90,280 120,876 153,974
Shareholder's Equity 72,474 84,265 105,340 132,053 160,280 190,876 223,974
Total Liabilities & Shareholder's Equity 126,376 139,065 140,252 167,319 195,951 227,937 261,927

Check 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

Cash Flow Statement

Operating Cash Flow

Net Earnings 2,474 11,791 21,075 26,713 28,227 30,596 33,099
Plus: Depreciation & Amortization 19,500 18,150 17,205 16,544 16,080 7,504 9,003
Less: Changes in Working Capital 9,003 1,702 775 903 827 3,175 4,003
Cash from Operations 12,971 28,239 37,505 42,354 43,480 34,924 38,099

Investing Cash Flow

Investments in Property & Equipment (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)
Investments in Businesses
Cash from Investing (15,000) (15,000) (15,000) (15,000) (15,000) (15,000) (15,000)

Financing Cash Flow

Issuance (repayment) of debt - - (20,000) - - - -
Issuance (repayment) of equity 70,000 - - - - - -
Payment of Dividends - - - - - - -
Cash from Financing 70,000 - (20,000) - - - -

Net Increase (decrease) in Cash 67,971 13,239 2,505 27,354 28,480 19,924 23,099
Opening Cash Balance - 67,971 81,210 83,715 111,069 139,550 159,474
Closing Cash Balance 67,971 81,210 83,715 111,069 139,550 159,474 182,573

Supporting Schedules

Working Capital Schedule

Accounts Receivable 5,100 5,904 6,567 7,117 7,539 8,179 8,997
Inventory 7,805 9,601 9,825 10,531 11,342 15,267 19,343
Accounts Payable 3,902 4,800 4,912 5,265 5,671 7,061 7,952
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210 16,385 20,388
Change in NWC 9,003 1,702 775 903 827 3,175 4,003

Depreciation Schedule
PPE Opening 50,000 45,500 42,350 40,145 38,602 37,521 45,017
Plus Capex 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Less Depreciation 19,500 18,150 17,205 16,544 16,080 7,504 9,003
PPE Closing 45,500 42,350 40,145 38,602 37,521 45,017 51,013

Debt & Interest Schedule

Debt Opening 50,000 50,000 50,000 30,000 30,000 30,000 30,000
Issuance (repayment) - - (20,000) - - - -
Debt Closing 50,000 50,000 30,000 30,000 30,000 30,000 30,000
Interest Expense 2,500 2,500 1,500 1,500 1,500 3,000 3,000
DCF Model

Assumptions
Tax Rate 25%
Discount Rate 12%
Perpetual Growth Rate 4%
EV/EBITDA Multiple 8.0x
Current Price $11.75
Shares Outstanding 50,000

Discounted Cash Flow Entry 2025 2026 2027 2028 2029 2030 Exit
Date 9/30/2025 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030 12/31/2030
Year Fraction 0.25 1.00 1.00 1.00 1.00 1.00 1.00

EBIT 45,494 48,970 53,062 56,958 60,478 65,983

Less: Cash Taxes 11,373 12,243 13,265 14,240 15,120 16,496
NOPAT 34,120 36,728 39,796 42,719 45,359 49,487
Plus: D&A 7,504 9,003 10,203 11,162 11,930 12,544
EBITDA 52,998 57,974 63,264 68,121 72,408 78,526
Less: Capex 15,000 15,000 15,000 15,000 15,000 15,000
Less: Changes in NWC 3,175 4,003 4,749 2,564 2,706 2,128
Unlevered FCF 23,449 26,728 30,250 36,317 39,583 44,902 579,263

Transaction FCFF - 5,862 26,728 30,250 36,317 39,583 44,902 579,263

IRR FCFF (463,848) 5,862 26,728 30,250 36,317 39,583 44,902 579,263

Intrinsic Value Market Value Rate of Return

Enterprise Value 445,967 Market Cap 587,500 IRR
Plus: Cash 153,652 Plus: Debt 30,000
Less: Debt 30,000 Less: Cash 153,652
Equity Value 569,618 Enterprise Value 463,848

Equity Value/Share 11.39 Equity Value/Share 11.75

 Forecast Period Stub
2027 2028 2029 2030
ok ok ok ok
12/31/2027 12/31/2028 12/31/2029 12/31/2030 9/30/2025 12/31/2025
365 366 365 365 273 92
1.000 1.000 1.000 1.000 0.748 0.252

10.0% 9.0% 8.0% 7.0% 10.0% 10.0%

44.0% 45.0% 46.0% 46.0% 42.0% 42.0%
17.0% 17.0% 17.0% 17.0% 17.0% 17.0%
15,000 15,000 15,000 15,000 15,000 15,000
20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
28.0% 28.0% 28.0% 28.0% 28.0% 28.0%
18 18 18 18 18 18
100 100 100 100 80 80
37 37 37 37 37 37
15,000 15,000 15,000 15,000 15,000 15,000
(20,000) - - - - -
- - - - - -
- - 200 200 - -

4.0% 3.5% 3.0% 3.0% 5.0% 5.0%

36.0% 36.0% 35.0% 35.0% 37.0% 37.0%
17.0% 17.0% 17.0% 17.0% 17.0% 17.0%
10,000 10,000 10,000 10,000 10,000 10,000
20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
28.0% 28.0% 28.0% 28.0% 28.0% 28.0%
18 18 18 18 18 18
73 73 73 73 73 73
37 37 37 37 37 37
 15,000 15,000 15,000 15,000 15,000 15,000
(20,000) - - - - -
- - - - - -
- - 100 100 - -

10.0% 9.0% 8.0% 7.0% 10.0% 10.0%

44.0% 45.0% 46.0% 46.0% 42.0% 42.0%
17.0% 17.0% 17.0% 17.0% 17.0% 17.0%
15,000 15,000 15,000 15,000 15,000 15,000
20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
28.0% 28.0% 28.0% 28.0% 28.0% 28.0%
18 18 18 18 18 18
100 100 100 100 80 80
37 37 37 37 37 37
15,000 15,000 15,000 15,000 15,000 15,000
(20,000) - - - - -
- - - - - -
- - 200 200 - -

200,678 218,739 236,238 252,774 124,046 41,803

88,298 98,432 108,669 116,276 52,099 17,557
112,379 120,306 127,568 136,498 71,947 24,246

34,115 37,186 40,160 42,972 21,088 7,107

15,000 15,000 15,000 15,000 11,219 3,781
10,203 11,162 11,930 12,544 5,613 1,891
1,000 1,000 1,000 1,000 2,244 756
60,318 64,348 68,090 71,515 40,164 13,535
52,062 55,958 59,478 64,983 31,783 10,711

14,577 15,668 16,654 18,195 8,899 2,999

37,484 40,290 42,824 46,788 22,884 7,712
190,511 224,399 261,248 303,250 153,652 159,474
9,896 10,758 11,650 12,466 8,179 8,179
24,191 26,894 29,772 31,856 15,267 15,267
224,599 262,051 302,670 347,572 177,098 182,920
55,811 59,649 62,719 65,175 43,127 45,017
-
280,410 321,700 365,389 412,748 220,225 227,937
-
-
-
8,951 9,951 11,016 11,787 7,061 7,061
8,951 9,951 11,016 11,787 7,061 7,061
10,000 10,000 10,000 10,000 30,000 30,000
18,951 19,951 21,016 21,787 37,061 37,061
-
70,000 70,000 70,000 70,000 70,000 70,000
191,459 231,749 274,373 320,961 113,164 120,876
261,459 301,749 344,373 390,961 183,164 190,876
280,410 321,700 365,389 412,748 220,225 227,937

0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

37,484 40,290 42,824 46,788 22,884 7,712

10,203 11,162 11,930 12,544 5,613 1,891
4,749 2,564 2,706 2,128 3,175 -
42,938 48,888 52,048 57,203 25,321 9,603

(15,000) (15,000) (15,000) (15,000) (11,219) (3,781)

(15,000) (15,000) (15,000) (15,000) (11,219) (3,781)

(20,000) - - - - -
- - - - - -
- - (200) (200) - -
(20,000) - (200) (200) - -

7,938 33,888 36,848 42,003 14,102 5,822

182,573 190,511 224,399 261,248 139,550 153,652
190,511 224,399 261,248 303,250 153,652 159,474

9,896 10,758 11,650 12,466 8,179 8,179

24,191 26,894 29,772 31,856 15,267 15,267
8,951 9,951 11,016 11,787 7,061 7,061
25,137 27,701 30,407 32,535 16,385 16,385
4,749 2,564 2,706 2,128 3,175 -

51,013 55,811 59,649 62,719 37,521 43,127

15,000 15,000 15,000 15,000 11,219 3,781
10,203 11,162 11,930 12,544 5,613 1,891
55,811 59,649 62,719 65,175 43,127 45,017

30,000 10,000 10,000 10,000 30,000 30,000

(20,000) - - - - -
10,000 10,000 10,000 10,000 30,000 30,000
1,000 1,000 1,000 1,000 2,244 756
Terminal Value
EV/EBITDA 579,263

11%
 Historical Results Forecast Period
Brick 'n' Mortar Co Model 2020 2021 2022 2023 2024 2025 2026
Balance Sheet Check ok ok ERROR ok ok ok ok
End of Period 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026
Days in Period 366 365 365 365 366 365 365
Fraction of Year 1.000 1.000 1.000 1.000 1.000 1.000 1.000

Assumptions

LIVE SCENARIO 1

SCENARIO 1
Revenue Growth (% Change) 15.0% 15.0%
Cost of Goods Sold (% of Revenue) 42.0% 41.0%
Salaries and Benefits (% of Revenue) 16.0% 16.0%
Rent and Overhead ($000's) 7,000 7,000
Depreciation & Amortization (% of PP&E) 20.0% 20.0%
Interest (% of Debt) 8.0% 8.0%
Tax Rate (% of Earnings Before Tax) 32.0% 32.0%
Accounts Receivable (Days) 22 18
Inventory (Days) 75 75
Accounts Payable (Days) 39 39
Capital Expenditures ($000's) 5,750 5,750
Debt Issuance (Repayment) ($000's) - -
Equity Issued (Repaid) ($000's) - -
Payment of Dividends - -

SCENARIO 2
Revenue Growth (% Change) 5.0% 4.5%
Cost of Goods Sold (% of Revenue) 37.0% 37.0%
Salaries and Benefits (% of Revenue) 17.0% 17.0%
Rent and Overhead ($000's) 10,000 10,000
Depreciation & Amortization (% of PP&E) 20.0% 20.0%
Interest (% of Debt) 5.0% 5.0%
Tax Rate (% of Earnings Before Tax) 28.0% 28.0%
Accounts Receivable (Days) 18 18
Inventory (Days) 73 73
Accounts Payable (Days) 37 37
Capital Expenditures ($000's) 15,000 15,000
Debt Issuance (Repayment) ($000's) - -
Equity Issued (Repaid) ($000's) - -
Payment of Dividends - -

LIVE SCENARIO
Revenue Growth (% Change) 15.0% 15.0%
Cost of Goods Sold (% of Revenue) 42.0% 41.0%
Marketing, Advertising & Promotion (% of Revenue) 16.0% 16.0%
General & Administrative ($000's) 7,000 7,000
Depreciation & Amortization (% of PP&E) 20.0% 20.0%
Interest (% of Debt) 8.0% 8.0%
Tax Rate (% of Earnings Before Tax) 32.0% 32.0%
Accounts Receivable (Days) 22 18
Inventory (Days) 75 75
Accounts Payable (Days) 39 39
Capital Expenditures ($000's) 5,750 5,750
Debt Issuance (Repayment) ($000's) - -
Equity Issued (Repaid) ($000's) - -
Payment of Dividends - -

Income Statement

Revenue 57,128 66,132 73,558 79,716 84,438 97,103 111,669

Cost of Goods Sold (COGS) 21,854 26,884 27,511 29,488 31,760 40,783 45,784
Gross Profit 35,273 39,248 46,047 50,228 52,678 56,320 65,885
Expenses
Marketing, Advertising & Promotion 14,800 12,689 13,369 12,882 14,138 15,537 17,867
General & Administrative 6,140 5,670 5,649 6,172 6,391 7,000 7,000
Depreciation & Amortization 10,921 10,165 9,635 9,265 9,006 4,203 4,512
Interest 1,400 1,400 840 840 840 1,344 1,344
Total Expenses 33,261 29,924 29,494 29,159 30,375 28,083 30,723
Earnings Before Tax 2,013 9,324 16,554 21,069 22,303 28,237 35,161

Taxes 1,120 4,858 8,483 10,908 11,598 9,036 11,252

Net Earnings 893 4,466 8,071 10,161 10,706 19,201 23,910
Balance Sheet

Assets
Cash 37,573 42,850 40,521 51,041 61,889 77,065 99,589
Accounts Receivable 2,856 3,307 3,678 3,986 4,222 5,853 5,507
Inventory 4,371 5,377 5,502 5,898 6,352 8,380 9,408
Current Assets 44,801 51,534 49,701 60,925 72,462 91,298 114,504
Property & Equipment 25,482 23,718 22,483 21,618 21,013 22,561 23,798
Goodwill - - 22,483 - -
Total Assets 70,282 75,251 94,666 82,543 93,476 113,858 138,302

Liabilities
Short Term Debt - - - - -
Accounts Payable 2,185 2,688 2,751 2,949 3,176 4,358 4,892
Current Liabilities 2,185 2,688 2,751 2,949 3,176 4,358 4,892
Long Term Debt 28,002 28,002 16,801 16,801 16,801 16,801 16,801
Total Liabilities 30,187 30,690 19,552 19,750 19,977 21,159 21,693
Shareholder's Equity
Equity Capital 39,203 39,203 39,203 39,203 39,203 39,203 39,203
Retained Earnings 893 5,358 13,429 23,591 34,296 53,497 77,407
Shareholder's Equity 40,095 44,561 52,632 62,793 73,499 92,699 116,609
Total Liabilities & Shareholder's Equity 70,282 75,251 72,184 82,543 93,476 113,858 138,302

Check 0.0000 0.0000 -22482.6389 0.0000 0.0000 0.0000 0.0000

Cash Flow Statement

Operating Cash Flow

Net Earnings 893 4,466 8,071 10,161 10,706 19,201 23,910
Plus: Depreciation & Amortization 10,921 10,165 9,635 9,265 9,006 4,203 4,512
Less: Changes in Working Capital 5,042 953 434 506 463 2,477 147
Cash from Operations 6,771 13,677 17,272 18,921 19,248 20,926 28,274

Investing Cash Flow

Investments in Property & Equipment (8,401) (8,401) (8,401) (8,401) (8,401) (5,750) (5,750)
Investments in Businesses
Cash from Investing (8,401) (8,401) (8,401) (8,401) (8,401) (5,750) (5,750)

Financing Cash Flow

Issuance (repayment) of debt - - (11,201) - - - -
Issuance (repayment) of equity 39,203 - - - - - -
Payment of Dividends - - - - - - -
Cash from Financing 39,203 - (11,201) - - - -

Net Increase (decrease) in Cash 37,573 5,277 (2,329) 10,520 10,847 15,176 22,524
Opening Cash Balance - 37,573 42,850 40,521 51,041 61,889 77,065
Closing Cash Balance 37,573 42,850 40,521 51,041 61,889 77,065 99,589

Supporting Schedules

Working Capital Schedule

Accounts Receivable 2,856 3,307 3,678 3,986 4,222 5,853 5,507
Inventory 4,371 5,377 5,502 5,898 6,352 8,380 9,408
Accounts Payable 2,185 2,688 2,751 2,949 3,176 4,358 4,892
Net Working Capital (NWC) 5,042 5,995 6,429 6,935 7,398 9,875 10,023
Change in NWC 5,042 953 434 506 463 2,477 147

Depreciation Schedule
PPE Opening 28,002 25,482 23,718 22,483 21,618 21,013 22,561
Plus Capex 8,401 8,401 8,401 8,401 8,401 5,750 5,750
Less Depreciation 10,921 10,165 9,635 9,265 9,006 4,203 4,512
PPE Closing 25,482 23,718 22,483 21,618 21,013 22,561 23,798

Debt & Interest Schedule

Debt Opening 28,002 28,002 28,002 16,801 16,801 16,801 16,801
Issuance (repayment) - - (11,201) - - - -
Debt Closing 28,002 28,002 16,801 16,801 16,801 16,801 16,801
Interest Expense 1,400 1,400 840 840 840 1,344 1,344
DCF Model

Assumptions
Tax Rate 25%
Discount Rate 12%
Perpetual Growth Rate 4%
EV/EBITDA Multiple 8.0x
Current Price $17.30
Shares Outstanding 25,000

Discounted Cash Flow Entry 2025 2026 2027 2028 2029 2030 Exit
Date 9/30/2025 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030 12/31/2030
Year Fraction 0.25 1.00 1.00 1.00 1.00 1.00 1.00

EBIT 29,581 36,506 43,271 48,576 53,260 57,056

Less: Cash Taxes 7,395 9,126 10,818 12,144 13,315 14,264
NOPAT 22,186 27,379 32,453 36,432 39,945 42,792
Plus: D&A 4,203 4,512 4,760 4,958 5,116 5,243
EBITDA 33,783 41,018 48,030 53,533 58,376 62,299
Less: Capex 5,750 5,750 5,750 5,750 5,750 5,750
Less: Changes in NWC 2,477 147 1,079 1,077 1,010 791
Unlevered FCF 18,161 25,994 30,383 34,563 38,301 41,493 467,009

Transaction FCFF - 4,540 25,994 30,383 34,563 38,301 41,493 467,009

IRR FCFF (376,686) 4,540 25,994 30,383 34,563 38,301 41,493 467,009

Intrinsic Value Market Value Market Value Takeover Rate of Return

Enterprise Value 378,381 Market Cap 432,500 519,000 IRR (Current Share Price)
Plus: Cash 72,615 Plus: Debt 16,801 16,801
Less: Debt 16,801 Less: Cash 72,615 72,615
Equity Value 434,195 Enterprise Value 376,686 463,186

Equity Value/Share 17.37 Equity Value/Share 17.30

 Forecast Period Stub
2027 2028 2029 2030
ok ok ok ok
12/31/2027 12/31/2028 12/31/2029 12/31/2030 9/30/2025 12/31/2025
365 366 365 365 273 92
1.000 1.000 1.000 1.000 0.748 0.252

12.0% 10.0% 8.0% 6.0% 15.0% 15.0%

40.0% 40.0% 40.0% 40.0% 42.0% 42.0%
16.0% 16.0% 16.0% 16.0% 16.0% 16.0%
7,000 7,000 7,000 7,000 7,000 7,000
20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
32.0% 32.0% 32.0% 32.0% 32.0% 32.0%
18 18 18 18 22 22
75 75 75 75 75 75
39 39 39 39 39 39
5,750 5,750 5,750 5,750 5,750 5,750
- - - (10,000) - -
- - - - - -
- - 200 200 - -

4.0% 3.5% 3.0% 3.0% 5.0% 5.0%

36.0% 36.0% 35.0% 35.0% 37.0% 37.0%
17.0% 17.0% 17.0% 17.0% 17.0% 17.0%
10,000 10,000 10,000 10,000 10,000 10,000
20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
28.0% 28.0% 28.0% 28.0% 28.0% 28.0%
18 18 18 18 18 18
73 73 73 73 73 73
37 37 37 37 37 37
 15,000 15,000 15,000 15,000 15,000 15,000
(20,000) - - - - -
- - - - - -
- - 100 100 - -

12.0% 10.0% 8.0% 6.0% 15.0% 15.0%

40.0% 40.0% 40.0% 40.0% 42.0% 42.0%
16.0% 16.0% 16.0% 16.0% 16.0% 16.0%
7,000 7,000 7,000 7,000 7,000 7,000
20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
32.0% 32.0% 32.0% 32.0% 32.0% 32.0%
18 18 18 18 22 22
75 75 75 75 75 75
39 39 39 39 39 39
5,750 5,750 5,750 5,750 5,750 5,750
- - - (10,000) - -
- - - - - -
- - 200 200 - -

125,069 137,576 148,582 157,497 72,628 24,475

50,028 55,030 59,433 62,999 30,504 10,280
75,041 82,546 89,149 94,498 42,124 14,196

20,011 22,012 23,773 25,200 11,620 3,916

7,000 7,000 7,000 7,000 5,236 1,764
4,760 4,958 5,116 5,243 3,143 1,059
1,344 1,344 1,344 544 1,005 339
33,115 35,314 37,233 37,987 21,005 7,079
41,927 47,232 51,916 56,512 21,120 7,117

13,417 15,114 16,613 18,084 6,758 2,278

28,510 32,118 35,303 38,428 14,361 4,840
126,030 156,278 189,737 216,666 72,615 77,065
6,168 6,766 7,327 7,767 5,853 5,853
10,280 11,277 12,212 12,945 8,380 8,380
142,477 174,321 209,276 237,378 86,848 91,298
24,789 25,581 26,215 26,722 22,170 22,561
-
167,266 199,902 235,491 264,100 109,019 113,858

-
5,345 5,864 6,350 6,731 4,358 4,358
5,345 5,864 6,350 6,731 4,358 4,358
16,801 16,801 16,801 6,801 16,801 16,801
22,146 22,665 23,151 13,532 21,159 21,159

39,203 39,203 39,203 39,203 39,203 39,203

105,917 138,034 173,137 211,365 48,657 53,497
145,119 177,237 212,340 250,568 87,860 92,699
167,266 199,902 235,491 264,100 109,019 113,858

0.0000 0.0000 0.0000 0.0000 0.0000 0.0000

28,510 32,118 35,303 38,428 14,361 4,840

4,760 4,958 5,116 5,243 3,143 1,059
1,079 1,077 1,010 791 2,477 -
32,190 35,998 39,409 42,880 15,027 5,899

(5,750) (5,750) (5,750) (5,750) (4,301) (1,449)

(5,750) (5,750) (5,750) (5,750) (4,301) (1,449)

- - - (10,000) - -
- - - - - -
- - (200) (200) - -
- - (200) (10,200) - -

26,440 30,248 33,459 26,930 10,726 4,450

99,589 126,030 156,278 189,737 61,889 72,615
126,030 156,278 189,737 216,666 72,615 77,065

6,168 6,766 7,327 7,767 5,853 5,853

10,280 11,277 12,212 12,945 8,380 8,380
5,345 5,864 6,350 6,731 4,358 4,358
11,102 12,179 13,189 13,981 9,875 9,875
1,079 1,077 1,010 791 2,477 -

23,798 24,789 25,581 26,215 21,013 22,170

5,750 5,750 5,750 5,750 4,301 1,449
4,760 4,958 5,116 5,243 3,143 1,059
24,789 25,581 26,215 26,722 22,170 22,561

16,801 16,801 16,801 16,801 16,801 16,801

- - - (10,000) - -
16,801 16,801 16,801 6,801 16,801 16,801
1,344 1,344 1,344 544 1,005 339
 Terminal Value
EV/EBITDA 467,009

ate of Return
RR (Current Share Price) 12%