Adjust assumptions to model entry price, debt structure, and exit returns in real time.
Split total debt into two layers. Senior debt is cheaper (bank loan). Mezzanine is riskier, higher rate — sits behind senior in repayment priority.
One-off costs paid at entry. Reduce the equity available from day one.
Cash tied up in day-to-day operations. A positive adjustment means the business releases cash at exit (good). Negative means it needs more cash locked in.
Mandatory minimum debt repayments each year, regardless of how much cash the business generates. Like minimum mortgage repayments.
| Item | Entry | Exit | Change |
|---|
| Year | Debt | Interest | Repaid |
|---|