OpCo: leveraged buyout

A leveraged buyout: entry at a stated multiple, debt paid down out of operating cash flow, and an exit that returns the sponsor's equity.

Every number below is checked against an independent reference implementation on every commit — period by period, and on each metric, inside a declared tolerance. See benchmark methodology.

The case

A five-year leveraged buyout of a services business. Entry at 8.0x a $33.6m run-rate EBITDA, funded with term debt; the business grows, pays the debt down out of operating cash flow, and is sold at an exit multiple. Working capital moves on a days-based policy — receivables, payables and inventory — rather than as a stated figure, and cash taxes are paid on the levered result.

The reference

Sponsor buyout conventions: sources and uses at entry, a debt schedule paid from operating cash flow, working capital driven by days outstanding, and an exit at a multiple of trailing earnings.

Provenance. No external source exists for this case. The expectations come from an in-repo reference implementation generated from the pack's rules, built separately from the model and compared period by period, pending practitioner review. Nothing external asserts them.

What it exercises

The result

Present value 13,883,137.75, multiple on invested capital 3.471947 and lifetime revenue 69,485,786.14.

Asserted: net cash flow per period, plus eleven metrics, the three above among them.

The delta

None: every period agrees inside a one-cent tolerance. The multiple carries a basis-point tolerance; it is a ratio of sums, computed directly.

Run configuration

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

Verified results

Checked period by period: 1 series across 60 periods — 60 values in all, each within ±0.01 of the reference.

• net_cash_flow

Summary metrics for the base run: