OpCo: leveraged buyout

version 0.1
model "lbo-buyout"
use pack "opco" version "0.1.0"
time calendar monthly from 2026-01 for 60

entity operating target

// $12M-revenue services business bought at 8.0x run-rate EBITDA with a
// 5.0x term loan; sold after 5 years at 8.5x trailing-12 EBITDA.

contract opco.revenue_line on entity operating.target {
  term 2026-01..2030-12
  terms {
    amount = 1000000
    growth_rate = 0.06
  }
}

contract opco.opex_line on entity operating.target {
  term 2026-01..2030-12
  terms {
    amount = 650000
    growth_rate = 0.04
  }
}

// DSO 45 / DPO 30 / DIO 10; ending balance released at exit.
contract opco.working_capital_policy on entity operating.target {
  term 2026-01..2030-12
  terms {
    ar_days = 45
    ap_days = 30
    inv_days = 10
    release_at_end = 1
  }
}

// Maintenance capex at 3% of revenue.
contract opco.capex_line on entity operating.target {
  term 2026-01..2030-12
  terms {
    pct_of_revenue = 0.03
  }
}

// 5.0x leverage: $21mm term loan, 8.5%, 12 months IO then 7-year
// amortization, balloon at exit.
contract opco.term_debt on entity operating.target {
  term 2026-01..2030-12
  terms {
    principal = 21000000
    rate = 0.085
    io_months = 12
    amort_months = 84
  }
}

// Cash taxes at 26% on EBITDA - D&A - interest (no NOL carryforward).
contract opco.cash_taxes on entity operating.target {
  term 2026-01..2030-12
  terms {
    tax_rate = 0.26
    da_monthly = 150000
  }
}

// Entry at 8.0x annualized run-rate EBITDA = 8.0 * (350k * 12) = $33.6mm.
contract opco.acquisition on entity operating.target {
  term 2026-01..2026-01
  terms {
    price = 33600000
  }
}

// Exit at 8.5x trailing-12 EBITDA net of 1.5% selling costs.
contract opco.exit_ebitda on entity operating.target {
  term 2030-12..2030-12
  terms {
    exit_multiple = 8.5
    selling_costs = 0.015
  }
}

{
  "deterministic": {
    "annual_discount_rate": 0.12
  }
}