Buy a Business v2.1

	A	B	C	D	E	F	G	H	I	J	K	L	M	N	O	P	Q	R
1	Self-Funded Search Fund/Micro Buyout
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3	Inspiration & Strategy Overview: Twitter thread by Brandon Laughridge									Blue cells are inputs
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5	Instructions: Feel free to create your own editable version of this spreadsheet by going to "File" > "Make a copy." The blue cells are the inputs (i.e. everything else should update automatically).
6	This is just a hypothetical example for educational purposes only, and was last updated in 2020.
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9	Deal Terms			Financing						Sale Terms			Results
10	EBITDA	800,000		Type	Percentage	Amount	Interest Rate	Term (Years)		Sale Multiple	4.25		Party	ROI	IRR	MOIC	Total Proceeds	Sale Proceeds
11	Purchase Multiple	4.00		SBA Loan	85%	2,720,000	6%	10		Sale Year	7		Equity Partner	653.9%	171.3%	7.54x	1,206,218	250,545
12	Purchase Price	3,200,000		Seller Financing	10%					Remaining Debt	1,051,015		Majority Owner				3,786,931	2,254,905
13				Tranche 1	5%	160,000	6%	10		Seller Tranche 2 Payoff	240,581
14				Tranche 2	5%	160,000	6%	11		Broker Comm	8%
15	Operating Assumptions			Equity Partners	5%	160,000				Legal & Acct	50,000
16	EBITDA Growth Rate	3%		Repayment Terms: Majority owner will take no distributions until equity partners have received 5x return of capital.
17	Ownership Retained	90%
18	Capex/Reinvestment/Req'd WC	15%			Return of Cap Multiple	5			OK
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21		Year
22		1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17
23	EBITDA	824,000	848,720	874,182	900,407	927,419	955,242	983,899	1,013,416	1,043,819	1,075,133	1,107,387	1,140,609	1,174,827	1,210,072	1,246,374	1,283,765	1,322,278
24	SBA Debt	(362,371)	(362,371)	(362,371)	(362,371)	(362,371)	(362,371)	(362,371)	(362,371)	(362,371)	(362,371)	0	0	0	0	0	0	0
25	Seller Financed Debt	(21,316)	(21,316)	(21,316)	(21,316)	(21,316)	(21,316)	(21,316)	(21,316)	(21,316)	(21,316)	0	0	0	0	0	0	0
26	Reserves for Standby Equity (Tranche 2)	(27,612)	(27,612)	(27,612)	(27,612)	(27,612)	(27,612)	(27,612)	(27,612)	(27,612)	(27,612)	(27,612)	0	0	0	0	0	0
27	Capex/Reinvestment/Req'd WC	(123,600)	(127,308)	(131,127)	(135,061)	(139,113)	(143,286)	(147,585)	(152,012)	(156,573)	(161,270)	(166,108)	(171,091)	(176,224)	(181,511)	(186,956)	(192,565)	(198,342)
28	Net Distributable Cash Flow	289,102	310,114	331,756	354,048	377,008	400,657	425,016	450,105	475,947	502,565	913,667	969,517	998,603	1,028,561	1,059,418	1,091,200	1,123,936
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30	Equity Partner Distributions	289,102	310,114	200,785	35,405	37,701	40,066	42,502	45,011	47,595	50,256	91,367	96,952	99,860	102,856	105,942	109,120	112,394
31	Majority Owner Distributions	0	0	130,971	318,643	339,307	360,591	382,514	405,095	428,353	452,308	822,301	872,566	898,743	925,705	953,476	982,080	1,011,543
32	Check	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
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34	Cumulative Equity Partner Distr	289,102	599,215	800,000	835,405	873,106	913,171	955,673	1,000,683	1,048,278	1,098,535	1,189,901	1,286,853	1,386,713	1,489,569	1,595,511	1,704,631	1,817,025
35	Remaining Return of Capital	510,898	200,785	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
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37	Sale Price							4,181,571
38	Seller Standby Equity (Tranche 2) Payoff							(240,581)
39	Remaining Debt							(1,051,015)
40	Broker & Professional Fees							(384,526)
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42	Net Proceeds	0	0	0	0	0	0	2,505,450	0	0	0	0	0	0	0	0	0	0
43	Equity Parter Sale Proceeds	0	0	0	0	0	0	250,545	0	0	0	0	0	0	0	0	0	0
44	Majority Owner Sale Proceeds	0	0	0	0	0	0	2,254,905	0	0	0	0	0	0	0	0	0	0
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46	Cumulative Distributions (Eq Ptr)							955,673
47	Cumulative Distributions (Majority)							1,532,026
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