Management Buyout MBO As Exit Option Powerpoint Presentation Slides

Your Company Name
Management
Buyout (MBO)
as Exit Option

Objectives
It will allow owners in liquidating their stake in business. Help them in two ways
Outlining Exit Strategy for Startup
Limit Losses
o If Business is Unsuccessful
Earn Substantial Profit
o If Business is Successful
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o Add Text Here
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Looking into Various Exit Strategies like
o M&A Opportunities
o Public Offering
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o Add Text Here
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2

Table
of
Contents
o Company Overview
o Brief Description About Top
Management
o Organizational chart with key
people involved
o Milestones Achieved During
Years FY15 –19
o Ownership Pattern of
Shareholders
o Firm Financial Performance
Introduction
01
o Initial Public Offering Process
o Initial Public Offering Process
Timeline
o Startup Firms that Went Public
o IPO Market Insights
Initial Public Offering
04
o Average Time to Exit through
Acquisition v/s IPO
o Comparison between Exit
Options Available
Comparative Analysis
Between Exit Options
07
o Firm Funding Cycle to Raise
Capital
o Funding Received by Firm Over
Period of Years
o Optimum Time Duration for
Choosing a Profitable Exit
Option
o Optimal Time for Exiting Firm
Moving Ahead
Towards Exit Stage
02
o Why Firm Chose Management
Buyout as Exit Option?
o Parties Involved in
Management Buyout Process
and Feasibility Criteria
o Management Buyout Process
o Management Buyout Process
Timeline
o Management Buyout Market
Insights
Management Buyout
05
o Discounted Cash Flow Model
Valuation
08
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What are Different Ways
to Exit Firm ?
03
o Strategic Acquisition by Third
Party Process Timeline
o Potential Buyer Profile
o Strategic Acquisition Market
Insights
Strategic Acquisition
by Third Party
06
o Projected Balance Sheet
o Projected Income Statement
o Projected Cash Flow Statement
o Financial Projections
o Annual Sales Forecast
Projected
Financial Performance
09
3

Introduction
01
Company Overview
Brief Description About Top Management
Organizational Chart with Key People Involved
Firm Financial Performance
Milestones Achieved During Years FY17 –21
Ownership Pattern of Shareholders
4

Financial Highlights
2,010
3,164
2,476 2,621
6,168
20%
15%
17%
25%
19%
2%
10% 10% 5%
7%
0%
5%
10%
15%
20%
25%
30%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY17 FY18 FY19 FY20 FY21
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Text
Here
REVENUE
32%
R
EBITDA
30%
E
NET INCOME
83%
NI
Company Background
Founder
Dexter Hastings
Founded in
2021
Location
Seattle, US
Brief description about
company’s history
Number of Employees
250
Ensure growth of customers by delivering good work
to aid like- mind business to achieve their goals
Mission Statement
To create a value driven society by becoming a
global resource for evolution of human
consciousness
Vision Statement
Shared Vision
Commitment Customer Satisfaction
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Keys to Success
CAGR
Company Overview
The slide provides glimpse about firm’s overview in terms of their objectives, mission, vision, keys to success and financial highlights.
5

Users per Server (each competitive advantages start)
5,000
Competitor X
75,000
XYZ
SaaS Delivery Model-
Multi-tenant
Highest Power Efficiency
Max Bill
Director of UX
Arline Decker
Tracy Bennett
Software Engineer
Peter Pirolli
Software Engineer
Paul Turing
Director of engineering
Total: 9
Senior Engineer
Jack Good
Emily James
Scott Sterling
Technology
Advisors
Key Employees
Series A Raised 04/2021
Raising for Series B
1.0MM
6MM
Owen Carlson
Brian Ford
Timothy Young
Founded in – 2021
Location – Seattle, US
Founder Investors Funding
Brief Description About Top Management
The slide provides information about the key people who are currently associated with the firm in terms of the founders, investors, employees, and amount of funds generated, etc.
6
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Organizational Chart with
Key People Involved
This slide presents the organizational structure of the firm with key people
involved in managing firm.
7
President
Bob Stenston
Vice President Finance
Mary Jones
Vice President Operators
James Sherman
Vice President Marketing
Lonnie Smith
Operations Manager
Dave Sims
Creative Director
Sally Crystal
Finance Manager
Mike Reid
Marketing Manager
Sally Crystal

Milestones Achieved during Years FY17-21 (Option 1 of 2)
The slide provides information about the key milestones firm has achieved in past few years.
Jan FY17
Established Legal Entity
Apr FY18
Product Launch
Oct FY19
10,000 Users
Aug FY20
100,000 Users
Oct FY21
USD 1 Million
Revenues Generated
8

Milestones Achieved during Years FY17-21 (Option 2 of 2)
The slide provides information about the key milestones firm has achieved in past few years.
Start
End
Jan FY17
Established Legal Entity
Apr FY18
Product Launch
Oct FY19
10,000 Users
Aug FY20
100,000 Users
Oct FY21
USD 1 Million
Revenues Generated
9

No. of Shares %
Shareholder 1 450 44%
Shareholder 4 12 5%
Shareholder 5 5 3%
Shareholder 6 6 2%
Ownership Pattern of Shareholders (1/3)
The slide provides information about shareholding pattern with the number of shares and percentage of ownership.
Shareholder
Name
10

Shareholder Name
Shareholding Pattern
Before Funding After Funding
Total Shares % Total Shares %
Name 1 85 55.5% 45 35.7%
Name 2 41 26.8% 47 37.3%
Name 3 15 9.8% 09 7.1%
Name 4 5 3.3% 12 9.5%
Name 5 12 7.8% 13 10.3%
Total 158 100% 126 100%
11

After Funding
(Total Shares)
Before Funding
(Total Shares)
08%
03%
10%
27%
56%
45
47
13
09
12
10%
10%
07%
37%
36%
100 126
Total 158 100
1 85
2 41
3 15
4 5
5 12
Shareholder Name
12

Firm Financial Performance
This slide provides information about firm’s financial performance in terms of revenues earned, gross profit generated, net profit earned and earnings per share.
610.2
625.3 626.4
600
605
610
615
620
625
630
FY 19 FY 20 FY 21
Revenues (in $million)
114 128 136
18.7
20.5
21.6
17
18
19
20
21
22
100
110
120
130
140
FY 19 FY 20 FY 21
Gross Profit (in $million) and
Gross Profit Margin (in %)
20 33 42
3.4
5.4
6.8
0
2
4
6
8
0
10
20
30
40
50
FY 19 FY 20 FY 21
Net Profit (in $million) & Net Profit Margin (in %)
1.8
2.95
3.74
0
1
2
3
4
FY 19 FY 20 FY 21
Earnings Per Share (%)
13

Moving Ahead
Towards Exit Stage
02
Firm Funding Cycle to Raise Capital
Funding Received by Firm Over Period of Years
Optimum Time Duration for Choosing a Profitable Exit Option
Optimal Time for Exiting Firm
14

Firm Funding Cycle to Raise Capital
This slide tells about the various stages firm has gone through in order to raise funds. The firm is moving towards the exit stage and will require more funds so it essential to look out various exit options for the investors.
Revenue
Co-Founders
Equity Crowdfunding & Crowdlending
1st
2nd
3rd
Mezzanine
IPO
Time
Break Even
Valley of
Death
Accelerators
Angels, FFF
Seed Capital
Early Stage
Later Stage
VCs, Acquisitions/Mergers &
Strategic Alliances
Secondary
Offerings
Public
Market
Now our investors are looking for an exit option and would like to sell 30% of company’s stake through any of the suitable exit options.
Seed Stage
o After the process being vetted and validated Friends and
family make investment in this stage
o Fund Raised - $154 MM
Early Stage
o Angel investors invests heavily in this stage
Growth Stage
o Sales Growth
o Financing Through Angel Groups
o VCs as Apart of Series A
Note
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(Millions of Dollars)
Years from Startup 0 2 4 6 8 10 12 16
Years
Invested
Friends & Family Angel Investors VC Series A VC Series B VC Series C M&A Exit
Friends & Family 1 $0.1 16
Friends & Family 2 $0.1 16
Angel 1 $0.1 14
Angel 2 $0.1 14
Angel 3 $0.1 14
Angel 4 $0.1 14
Angel 5 $0.1 14
VC 1 $2 $2 12
VC 2 $2 $2 $1 12
VC 3 $2 $1 8
VC 4 $2 $2 8
VC 5 $2 6
VC 6 $2 6
VC 7 $2 6
VC 8 $2
Total $ $0.2 $0.5 $4 $8 $13
Median Number of years VCs were Invested 7
Average Number of years VCs were invested 8
Average Number of years angels were invested 14
Average Number of years friends and family were
invested
16
Average Number of years founders were invested 16
Funding Received by Firm Over a Period of Years
This slide provides information regarding the numbers of years and the amount invested by various investors like family, friends, angel investors and venture capitalists over the period.
16

Optimum Time Duration for Choosing a Profitable Exit Option
This slide depicts importance of having exit strategy for the firm as with lesser time to exit, risk gets reduced and IRR gets increased.
Raise
Angel
Prove
Business Model
Exit @ $25M
w/65% Equity
Achieve
Product/ Market Fit
Social Proof:
Traction,
Momentum
Raise Mezz,
own 15%
Raise Series
A,Own 40%
Start Co. Raise Series B,
Own 25%
IPO or Acq @
$ 150M w/ 15% Equity
6-8 Years
2-3 Years
Risk Level ( Probability of Failure )
Reduction in Time to Exit = Risk Reduction + Increased IRR
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0
1
2
3
4
5
6
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7
Investment
Return
(Times)
Years from Investment
Fastest
Growth
Phase
Optimum
Time to
Start the Exit
Optimum
Exit Time
IRR =124%
More Typical
Time to Start
the Exit
More Typical
Exit Time
IRR = 15%
Optimal Time for Exiting Firm
This slide depicts what is the ideal time for the investors to exit the firm in order to secure optimum internal rate of return.
18

What are Different Ways
to Exit Firm ?
03
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What are Different Ways to Exit Firm?
This slide provides information of various exit strategies that firm can adopt in future like – initial public offering, management
buyouts, etc.
Initial Public Offering (IPO)
o Selling part of business to the public in form of shares
o Public shares issuance helps firm in raising capital from public investors
o Liquidity enhancement
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Management Buyouts
o Company’s management team acquire its assets and operations from its current owners
o Financed through combination of debt or private equity investment
o Debt is collateralized by company assets
o Provides Owners with Immediate Liquidity
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Strategic Acquisitions by Third Party
o Venture backed companies look out for strategic acquisitions
o Acquirer had an option to retain management team, may make substantial changes in firm’s operations, staff and
business lines
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Initial Public Offering
04
Initial Public Offering Process
Initial Public Offering Process Timeline
Startup Firms that Went Public
IPO Market Insights
21

Initial Public Offering Process (1/2)
This slide provides information about IPO process that firm can use as an exit option. It is the first sale of company’s share to the public and listing of shares on stock exchange. It will allow firm to raise capital by creating newly issued and selling
existing shares.
o IPO Readiness Assessment and
Diagnosis
o Set up IPO Project Management
Office and Resources
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12-24 months
prior to IPO
Strategic Considerations &
IPO Planning
1 2 3 4
o Build IPO fact book, tune business
plan for presenting for bank,
investors & analysts
o Develop external IPO team consists
of bankers, lawyers, auditors etc.
o Due Diligence Process Initiation
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06-12 months
prior to IPO
IPO
Preparation
5 6 7 8
o Draft Offering Prospectus
o Manage Filing Process
o Launch investor roadshow to attract
right customers
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01-06 months
prior to IPO
IPO
Transaction
9 10 11 12
o Mobilize Investor Relations through
Roadshows
o Handle investor expectations through
efficient forecasting
o Provide high quality external
reporting and disclosures
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Post
IPO
Being
Public
13 14 15 16
22

Initial Public Offering Process (2/2)
This slide provides information about IPO process that firm can use as an exit option. It is the first sale of company’s share to the public and listing of shares on stock exchange. It will allow firm to raise capital by creating newly issued and selling
existing shares.
Internal
Processes
Transitions
6 Months
before Filing
3 to 12 Months
before Filing
12 to 18 Months
before Filing
18 to 24 Months
before Filing
o Bookkeeping
o Track and identify key external metrics
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o Accounting Policies Implementation
o Document key business processes
and remediate control deficiencies
o Set Human Resources Policies And
Procedures
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o Prepare Draft S-1
o Quarterly board meeting with
committee reports
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o First Earning Release
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o Appoint Auditors
o Legal Counselor Selection
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o Audited Annual Report
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o Build IPO Leadership Team
o Banker Selection & Due Diligence
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o Adopt long term incentive program
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Initial Public Offering Process Timeline
The IPO process journey generally begins at least 12 to 24 months before the IPO.
Offering Preparation Marketing Preparation Marketing
Pricing
After
Market
Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Business Financial/Legal
Due Diligence
Documentation
Marketing
Offering/Pricing
Due Diligence
Drafting S-1 form and
Understanding Documentation
SEC Filing SEC Review
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Due Diligence Update
S-1 Finalized
Final Prospectus
Delivered
Developing Equity Story Drafting Roadshow Presentation Add Text Here Roadshow
Targeting Investors
IPO Launch
Contacting Co Managers
Closing
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Final Pricing
Pricing
Initial discussion in context to
offering size and structure
Pricing and Valuation Discussion
24

Startup Firms that went Public
This slide provides information about the various firms that went public in recent times. It presents when the IPO released, its price and valuation.
Company IPO Date IPO Price IPO Valuation Comments
Company 1 31 July 2021 $16 Per Share $2.15 Billion Add Text Here
Company 2 20 June 2021 $26 Per Share $1.2 Billion Add Text Here
Company 3 7 July 2021 $17 Per Share $600 Million Add Text Here
Company 4 28 June 2021 $20 Per Share $750 Million Add Text Here
Company 5 16 June 2021 $12 Per Share $307 Million Add Text Here
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IPO Market Insights
This slide provides glimpse about the number of IPO raised in various sectors, and their success rate.
Markets 2021 Change on Prior Year
261 IPOs 14%
$60.0b Proceeds 16%
$0
$40
$80
$120
0
100
200
300
400
2017 2018 2019 2020 2021
All Amounts in Table are in US$
Number of IPOs Proceeds US$b
IPO Pricing & Performance
US Markets First – Day Average Return
Share Price performance
since IPO (aka offer – to –
Current)
+15.1% +10.6%
+ or – Indicates change
compared with offer price at
IPO
First day & Current average returns are mean returns of
issuers who started trading by 29 November
Chances of getting
Positive Returns
70%
Chances of getting
Negative Returns
30%
Success Rate
205 IPOs raising a total of US$52.8b in 2021
Health care, technology and financials sectors saw the
highest level of IPO activity in 2021
26 unicorns came to the public market in 2021
Sectors
(By highest number of IPOs)
Health Care
23 IPOs
$2.4b
Technology
14 IPOs
$2.8b
Materials
7 IPOs
$395m
26

Management Buyout
05
Why Firm Chose Management Buyout as Exit Option?
Parties Involved in Management Buyout Process and Feasibility Criteria
Management Buyout Market Insights
Management Buyout Process Timeline
27

Management acquire the company through debt buying
over a period
It will work towards debt repayment with interest rate as
well as managing firm’s operations and elevating its value
0
5
10
15
20
25
30
Enterprise
Value
$MM
Time
Increase in Enterprise Value Repayment of Debt Bank Debt VC Debt
Why Investors
Prefer MBO?
Successful firms with no
succession plan with
availability of ample amount
of funds
Management represents
sophisticated buyers who
are already familiar to
business operations
Add Text Here
Selling to management
significantly decrease the
risk of exposing confidential
information
Why Firm Chose Management Buyout as Exit Option?
This slide provides glimpse about why firms chose management buyout as an exit option. In this process, management team of the company combine resources to acquire all or part of the company
they manage.
28

Parties Involved in Management Buyout Process and Feasibility Criteria
This slide provides information about various parties involved in order to carry out successful management buyout process and principle conditions to meet feasible buyout.
Private Equity
o Financial Resources
o Alignment of Interests
o Value Added Services
Management
o Abilities
o Depth
o Commitment
Owner
o Value Expectations
o Deal Structure
o Transitional Assistance
Business
o Organic Growth
o Quality of Cash Flow
o Ability to Leverage
o Due Diligence Readiness
Sound and well-balanced management team
Management Team
Commercially Successful Business
Strong Cash
Generating Business
Business must be in a readily saleable
condition to take to market
Due Diligence
Planning & Readiness
Willing private equity group prepared to
provide capital and expertise and the buy-out
must be capable of supporting an appropriate
funding structure.
Private Equity
Feasibility Criteria
29

This slide provides information about the management buyout process. The management team will assess the amount they are able to invest, build forecast financial model.
Employees
Establish Credibility
with Owners
Opportunity to Purchase the
Business you
work for
Write
Business Plan
Owners
Assess the
Opportunity & Risks
Assess the
Commitment Required
(e.g. Money,
Managers & Time)
Close
Deal
Complete Due Diligence
Raise
Finance
Negotiate Terms
of the Sale
30

Activities
Month
2
Month
1
Month
3
Month
4
Month
5
Month
6
Management Buyout Process Timeline
The management buyout process transactions generally take up to 6 months till completion.
Opportunity Identification
Management Team Identification
Professional Advisors’ Appointment
Feasibility Assessment
Vendors Negotiation
Financial Modeling and Structuring
Business Plan Development
Fundraising
Financial Vendor Negotiations
Due Diligence
Legal Documentations
Project Management and Finalization
Business Management
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Failure Rate 45%
Success Rate 55%
Other MBO
Deals
11%
Industrial
Deals
9%
Manufacturing
Management Buyouts are prevalent among tech companies comprising of 20% deals
Management Buyouts Market Insights
This slide provides glimpse about the market insights of management buyouts deals across various sectors like manufacturing, industries, technology firms, etc. with success and failure rate of MBO.
32

by Third Party
06
Strategic Acquisition by Third Party Process Timeline
Potential Buyer Profile
Strategic Acquisition Market Insights
33

Strategic Acquisition by Third Party Process Timeline
This slide depicts the merger and acquisition process as an exit option. It also presents the duration it will take to implement this process.
Guide the deal with clear
PMI philosophy that focuses
on revenge synergies
Establish synergy targets,
teams & performance
metrics
Follow a tiered approach
to protect existing value
while creating new
Track beyond the traditional
90 days, particularly
revenues
Value-Capture
Focus
M&A
Strategy
o Corporate M&A Strategy
o By & Build
o Acquisition
o Classic M&A
o M&A Organization
o Processes & Tools
Target
Screening
o Inorganic Actions
Defined
o On Going Market
Scanning
o Target Identification
Due
Diligence
o Target Due Diligence
o Valuation
o Synergy Assessment
o Program Structuring
Pre-Close
Planning
o Day one Planning
o Integration Master Plan
o Leadership &
Organization
o Communication Rollout
o Cultural Assessment
Post- Close
Implementation
o Functional Integration
o Risk Management
o Organization Integration
o Benefits Tracking
o IT Functional Integration
o End-State Operation
Model
o Portfolio Management
First 90 Days Day 91 to 2 Years
Traditional
Integration
Focus
34

Investor Name
Potential Buyer Profile
This slide provides crucial information about potential buyer(acquirer) in terms of their expertise, business objectives, revenues. etc.
Industry SaaS, Financial, Legal
Geography U.S.
Expertise Add Text Here
Budget Add Text Here
Decision Making Factors Add Text Here
Pain Points Add Text Here
Business Objectives
Short Term Increase customer base by 2% in next 4 months
Long Term – Firm Expansion
Notable Attributes
Well connected in startup space
Reputation as SaaS industry thought leaders
Revenues $2.5 Billion
Profit Margin Add Text Here
AUM $1.7 Billion
No. of Employees 5000
Add Text Here Your Text Here
35

Strategic Acquisition by Third Party Market Insights
This slide provides glimpse about the number of strategic acquisitions completed in various sectors, and their success rate.
578 Strategic Acquisitions
Total value of U.S. deals to some USD1.1tn
Strategic acquisitions saw the value of U.S. transactions grow by 19%
to account for some 55% of total global deals.
60%
Success Rate
40%
Failure Rate
Sectors
635bn
Energy &
Infrastructure
232bn
Financial
Services
155bn
180bn
Consumer
TMT
424bn Life Sciences
363bn
Real Estate
36

Comparative Analysis
Between Exit Options
07
Average Time to Exit through Acquisition v/s IPO
Comparison between Exit Options Available
37

Average Time to Exit through Acquisition v/s IPO
This slide provides glimpse about average time firm’s investors take to exit through IPO as compared to acquisition.
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Time to Exit (Acquisition) in years since first
Financing, 2004-2022
p75-p90 P25-P75 P10-P25 Mean Median
0
2
4
6
8
10
12
14
16
2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
*P – Percentile
Time to Exit (Initial Public Offering ) in years since
first Financing, 2004-2022
p75-p90 P25-P75 P10-P25 Mean Median
38

Comparison between Exit Options Available
This slide portrays various objectives that can be fulfilled by different exit options available.
Parameters Liquidity
Operating
Control
Continued
Ownership
Add
Text Here
Add
Text Here
Add
Text Here
Add
Text Here
Add
Text Here
Initial Public Offer
Mergers
MBO
Venture Capital
39

Valuation
08
Discounted Cash Flow Model
40

Discounted Cash Flow Model
DCF is a valuation method will help in determining the present value of company at depending upon the projections of how much money will it generate in future.
Historical Results Forecast Period
2015 2016 2017 2018 2019 2020 2021 2022 2023
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 2020 2021 2022 2023 2024 Exit Terminal Value
Date 9/30/2021 12.10.2019 1/23/2020 12/30/3-2020 12/31/2022 12/31/2023 12/31/2023 EV/EBITDA 579,263
Year Fraction 1.00 1.00 1.00 1.00 1.00 1.00
DEBIT 48,070 56,958 56,958 60,478 65,983
Les: Cash Taxes 12,243 14,240 14,240 15,120 16,496
NOPAT 36,728 42/719 32719 45,359 49,487
Plus: D&A 9,003 11/162 11,162 11,930 12,544
EBITDA 57,974 69/121 68,121 72,400 78,256
Less: Capex 15,000 15/000 15,000 16,000 15,000
Less: Changes in
NWC
4,003 2/564 2,564 2,700 2,128
Unilevered FCF 26,728 36/317 36,317 39,58301 44,902
DCF Value Market Value Rate of Return
Enterprise Value 418,525 Market Cap 587,500 IRR 10%
Plus: Cash 139,550 Plus: Debt 30,000
Less: Debt 30,000 Less: Cash 153,654
Equity Value 528,075 Enterprise Value 463,846
Equity Value/ Share 10.56 Equity Value/Share 11.75
41

Projected Financial
Performance
09
Projected Balance Sheet
Projected Income Statement
Projected Cash Flow Statement
Annual Sales Forecast
Financial Projections
42

Assets
Current Assets
Cash $63,000 $66,150 $71,111
Accounts Receivables $25,000 $26,250 $28,219
Inventory $14,000 $14,700 $15,803
Other Current Assets $129,000 $135,975 $146,173
Total Current Assets $231,000 $243,075 $261,306
Long Term Assets
Long Term Assets $144,000 $151,725 $163,104
Accumulated Depreciation $0 $0 $0
Total Long-Term Assets $268,500 $281,195 $303,069
Total Assets $500,000 $525,000 $564,375
Assets
Current Assets
Year 1 Year 2 Year 3
Pro forma Balance Sheet
Projected Balance Sheet
The purpose of this slide is to provide glimpse about the projected balance sheet of the firm to visualize firm’s financial performance for upcoming three years.
43

Liabilities and Capital
Current Liabilities
Accounts Payable $29,000 $30,450 $32,734
Current Borrowings $1,500 $1,575 $1,693
Other Current Liabilities $28,000 $29,925 $32,169
Subtotal Current Liabilities $59,000 $66,596 $0
Long Term Liabilities $189,000 $198,450 $213,334
Total Liabilities $277,000 $290,850 $312,664
Paid In/Invested Capital $223,000 $234,150 $251,711
Retained Earnings
Earnings
Total Capital $223,000 $234,150 $251,711
Total Liabilities and Capital $500,000 $525,000 $564,375
Net Worth $223,000 $234,150 $251,711
Pro forma Balance Sheet
Projected Balance Sheet (Contd…)
The purpose of this slide is to provide glimpse about the projected balance sheet of the firm to visualize firm’s financial performance for upcoming three years.
44

Projected Income Statement
The slide depicts the projected profit and loss of the firm to visualize firm’s financial performance for upcoming three years.
Income
Sales $1,028,422 $1,161,443 $1,235,835
Cost of Goods Sold ($402,113) ($414,176) ($426,602)
Gross Profit $626,309 $747,267 $809,234
Expenses
Accounting / Legal $12,000 $12,360 $12,731
Bad Debt $25,711 $26,482 $27,276
Shrinkage $90,000 $92,700 $95,481
Credit Card Fees $20,568 $21,185 $21,821
Insurance $75,000 $77,250 $79,568
Miscellaneous $44,112 $45,435 $46,798
Payroll Expenses $0 $0 $0
Permits and Licenses $7,356 $7,577 $7,804
Rent $68,000 $70,040 $72,141
Salaries $12,341 $12,711 $13,093
Wages $269,987 $323,057 $340,027
Total Expenses $625,075 $688,798 $716,739
Net Profit $1,234 $58,469 $92,494
Pro Forma Profit and Loss
45

Projected Cash Flow Statement
The purpose of this slide is to display the projected cash flow of the firm to visualize firm’s financial performance for upcoming three years.
Pro Form Cash Flow
Cash Received
Cash from Operations $148,101 $30,995 $11,402
Cash Sales $1,028,422 $1,161,443 $1,235,835
Cash from Receivables $0 $0
Subtotal Cash from Operations $1,176,523 $1,192,438 $1,247,237
Additional Cash Received $189,000
Sales Tax
Owners Investment $174,000
Subtotal Cash Received $1,539,523 $1,192,438 $1,247,237
Expenditures
Expenditure from Operations $765,113 $414,176 $426,602
Cash Spent $710,176 $731,481 $753,426
Bills Paid
Subtotal Spent on Operations $1,475,289 $1,145,658 $1,180,028
Additional Cash Spent
Sales Tax
Loan Payment $33,240 $35,378 $37,654
Subtotal Additional Cash Spent $33,240 $35,378 $37,654
Subtotal Expenditures $1,508,529 $1,181,036 $1,217,681
Net Cash Flow $30,994 $11,402 $29,556
Cash Balance $30,994 $42,397 $71.953
46

Financial Projections
The slide depicts the projected financial projections of the firm to visualize firm’s target market, number of users, revenues and expenses for upcoming five years.
Target Market 14,000,000 14,140,000 14,281,400 14,424,214 14,568,456
Users 47,542 180,903 454,991 837,215 1,308,040
Active Users, After Churn 3,402 15,587 37,058 63,930 93,567
% Market Penetration (Active) 0.02% 0.11% 0.26% 0.44% 0.64%
Revenue $ 647,306 $ 4,708,532 $ 15,184,121 $ 32,632,708 $ 55,162,995
Total Annualized Revenue $ 1,611,599 $ 7,802,411 $ 20,992,150 $ 40,339,770 $ 63,540,712
Expenses $ 1,092,011 $ 4,583,543 $ 11,748,537 $ 21,555,679 $ 32,593,302
Annualized Expenses $ 1,690,658 $ 5,990,906 $ 12,614,351 $ 19,725.,236 $ 26,342,579
EBITDA $ (444,705) $ 124,989 $ 3,435,585 $ 11,077,030 $ 22,569,693
Annualized EBITDA $ (79,059) $ 1,811,505 $ 8,377,799 $ 20,614,534 $ 37,198,133
EBITDA Margin -69% 3% 23% 34% 41%
Year 1 Year 2 Year 3 Year 4 Year 5
47

Annual Sales Forecast
This slide portrays the annual sales projections of the firm.
Annual Sales Forecast Year 1 Year 2 Year 3
Sales
Food Beverage Revenues $1,028,422 $1,079,843 $1,133,835
Additional Revenues $0 $81,600 $102,000
Total Sales $1,028,422 $1,61,443 $1,235,835
Controllable Costs
COGS $402,113 $414,176 $426,602
Payroll $269,987 $323,057 $340,027
Total Prime Cost $672,100 $737,234 $766,628
Controllable Profit $356,322 $424,209 $469,209
48

Icons Slide for Management Buyout (MBO) as Exit Option
49

Name Here
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image. And should be
replaced by your own
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replace image.
Designation
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Designation
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Designation
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Designation
Meet Our Team
51

Comparison Between Exit Options
Liquidity
Valuation
Continued Ownership
Operating Control
Funding for Growth Initiatives
Current Market Environment
Administrative ease
Future Upside
Retain Culture
Owner Objectives
Financial
Investor
Strategic IPO MBO
Leveraged
Recapitalization
52

5 to 7
years
Angel investors expect
their money back within
20%
40%
to
Annualized Internal Rate
of Return (IRR)
48%
24%
16%
12% 10%
96%
48%
32%
24%
19%
30%
72%
48%
36%
29%
30%
96%
64%
48%
38%
30% 30%
80%
68%
48%
0%
20%
40%
60%
80%
100%
$20 Million $40 Million $60 Million $80 Million $100 Million
$2M $4M $6M $8M $10M
This slide depicts the size of amount investor must invest in order to expect an optimum internal rate of return.
Investor Amount
Rate of Return Investors Expect
% Ownership of a Company Required to Deliver 30% IRR
53

30 60 90 Days Plan
First 30 Days
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First 60 Days
First 90 Days
54

Weekly Timeline with Task Name
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
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55

Roadmap for Process Flow
2020
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2018
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2019
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2021
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Start
End
56

Our Mission
Vision
audience’s attention.
Mission
Goal
57

About Us
Value Clients
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Target Audiences
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