Caplitica built a detailed LBO and earn-out model for a mid-market private equity fund acquiring a roll-up of consumer brands. The model integrated complex financing structures, quantified synergies, and aligned incentives through a structured earn-out plan - securing a successful acquisition valued at $180m+.
A mid-market private equity fund was acquiring a group of consumer brands through a roll-up strategy, intending to create a unified platform with improved operational efficiency and market reach. The acquisition involved multiple brands with varying revenue models, operational structures, and growth trajectories. To ensure a successful transaction, the client required a financial model capable of integrating different financing structures, projecting synergies, and aligning management incentives through a tailored earn-out mechanism. The model needed to withstand scrutiny from the investment committee and serve as a roadmap for achieving post-acquisition growth targets.
The model supported a successful acquisition valued at $180m+ by providing a clear breakdown of financing structures and aligning incentives through a structured earn-out plan. The private equity fund was able to present a compelling case to the investment committee, with scenario analysis and return waterfalls demonstrating the robustness of the deal. The CEO utilised the model as a roadmap for achieving post-acquisition targets, with incentives designed to drive growth and profitability.
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