OpCo
Operating companies: revenue and cost lines, working capital, leverage and an exit.
What it models
A business valued on its cash flow. Revenue and operating cost growing at declared rates, cash taxes, movements in working capital, capital spend, debt drawn and repaid, and an exit at a multiple or a perpetuity.
Contracts
Declare a contract and the pack expands it into the streams those terms imply, each classified so it lands on the right line of a statement.
| Contract | Terms it reads | Streams it emits |
|---|---|---|
opco.revenue_line | amount, amount_year, growth_rate | opco.revenue.recurring[.suffix] |
opco.opex_line | amount, amount_year, growth_rate | opco.opex.recurring[.suffix] |
opco.working_capital | amount | opco.working_capital.adjustment[.suffix] |
opco.exit_multiple | base, multiple, selling_costs | opco.exit.value[.suffix], opco.exit.selling_costs[.suffix] |
opco.working_capital_policy | ap_days, ar_days, inv_days, release_at_end | opco.working_capital.adjustment[.suffix] |
opco.capex_line | amount, amount_year, growth_rate, pct_of_revenue | opco.capex.line[.suffix] |
opco.reinvestment | growth_rate, sales_to_capital | opco.capex.reinvestment[.suffix] |
opco.term_debt | funded_at_close, interest_rate, principal | opco.debt.proceeds[.suffix], opco.debt.interest[.suffix], opco.debt.principal[.suffix] |
opco.cash_taxes | da_growth, da_monthly, da_year, tax_rate | opco.taxes.cash[.suffix] |
opco.exit_ebitda | multiple, selling_costs | opco.exit.value[.suffix], opco.exit.selling_costs[.suffix] |
opco.acquisition | price | opco.acquisition.price[.suffix] |
opco.exit_perpetuity | base, discount_rate, growth_rate, selling_costs | opco.exit.value[.suffix], opco.exit.selling_costs[.suffix] |
A contract can be declared more than once by giving it a suffix, so the pieces stay separable in the results.
Reporting
A free cash flow build-up from revenue through unlevered to levered cash flow, a sponsor view for a leveraged buyout, and a statement of cash flows by activity as ASC 230 and IAS 7 define it.
Related
- Statements — the pro forma this pack produces
- Metrics — what it reports over the whole model
- Validation — the reference models it is gated against