IPO Model
($ in Millions USD Except Per Share and Per Unit Data)
IPO Transaction Assumptions: Units:
Underwriting Discount: % 5.0% Deal & Expense Assumptions: $ in Millions
IPO Pricing Discount: % 15.0%
New Funds Raised in IPO: $ 250.0
Primary Share %: % 75.0%
Secondary Share %: % 25.0% (+) SEC Filing & Registration Fees: 1.0
(+) Printing Fees: 0.5
Greenshoe Provision %: % 15.0% (+) Accounting & Legal Fees: 2.0
Primary Allocation %: % 75.0% (+) Miscellaneous / Other Fees: 1.0
Total Fees: $ 4.5
Target - 2-Year Forward Revenue Estimate: $M $ 335.7
Target - 2-Year Forward EBITDA Estimate: $M 67.8
Target - 2-Year Forward Net Income Estimate: $M 43.0
Filing Range - 2-Year Forward TEV / Revenue Multiples
2-Year Forward TEV / Revenue Multiple at Trading: Units: 6.0 x 6.8 x 7.5 x 8.3 x 9.0 x
2-Year Forward Revenue: $M $ 335.7 $ 335.7 $ 335.7 $ 335.7 $ 335.7
Implied Post-Money Enterprise Value @ Trading: $M 2,014.3 2,266.1 2,517.9 2,769.7 3,021.5
(+) Net IPO Proceeds: $M 233.0 233.0 233.0 233.0 233.0
(+) Cash & Cash-Equivalents: $M 85.6 85.6 85.6 85.6 85.6
(+) Equity Investments & Non-Core Assets: $M 15.0 15.0 15.0 15.0 15.0
(-) Total Debt: $M - - - - -
(-) Noncontrolling Interests: $M - - - - -
(-) Preferred Stock: $M - - - - -
Implied Post-Money Equity Value @ Trading: $M 2,347.9 2,599.7 2,851.5 3,103.3 3,355.1
Pricing Discount %: % 15.0% 15.0% 15.0% 15.0% 15.0%
Pricing Discount Amount: $M 352.2 390.0 427.7 465.5 503.3
Implied Post-Money Equity Value @ Pricing: $M 1,995.7 2,209.7 2,423.8 2,637.8 2,851.8
Diluted Shares Outstanding: M Shares 19.513 19.513 19.513 19.513 19.513
Implied Offering Price per Share: $ as Stated $ 89.47 $ 100.43 $ 111.40 $ 122.37 $ 133.34
Overallotment (Greenshoe) Calculations:
(+) Primary Shares Issued in IPO: M Shares 2.8 2.5 2.2 2.0 1.9
(+) Secondary Shares Sold in IPO: M Shares 0.9 0.8 0.7 0.7 0.6
Total Shares Issued or Sold in IPO (Base Deal): M Shares 3.7 3.3 3.0 2.7 2.5
Total Overallotment Shares: M Shares 0.6 0.5 0.4 0.4 0.4
Total Shares Outstanding, Post-IPO and Greenshoe: M Shares 22.7 22.4 22.1 21.9 21.7
(+) Primary Shares Issued - Basic Offering: M Shares 2.8 2.5 2.2 2.0 1.9
(+) Primary Shares Issued - Overallotment: M Shares 0.4 0.4 0.3 0.3 0.3
Total Primary Shares Issued: M Shares 3.2 2.9 2.6 2.3 2.2
(+) Secondary Shares Sold - Basic Offering: M Shares 0.9 0.8 0.7 0.7 0.6
(+) Secondary Shares Sold - Overallotment: M Shares 0.1 0.1 0.1 0.1 0.1
Total Secondary Shares Issued: M Shares 1.1 1.0 0.9 0.8 0.7
Deal Size Post-Overallotment:
Base Deal Size (Primary + Secondary): $M $ 333.3 $ 333.3 $ 333.3 $ 333.3 $ 333.3
(+) Total Overallotment: $M 50.0 50.0 50.0 50.0 50.0
Total Offering Size: $M 383.3 383.3 383.3 383.3 383.3
Gross Primary Proceeds: $M 287.5 287.5 287.5 287.5 287.5
(-) Underwriting Discount: $M (14.4) (14.4) (14.4) (14.4) (14.4)
(-) Deal-Related Fees: $M (4.5) (4.5) (4.5) (4.5) (4.5)
Net IPO Proceeds to Issuer: $M 268.6 268.6 268.6 268.6 268.6
Additional Net Proceeds from Primary Overallotment: $M 35.6 35.6 35.6 35.6 35.6
Post-Overallotment Valuation:
Implied Post-Money Equity Value @ Pricing: $M 2,031.3 2,245.4 2,459.4 2,673.4 2,887.4
Implied Post-Money Equity Value @ Trading: $M 2,383.5 2,635.3 2,887.1 3,138.9 3,390.7
% Company Sold in IPO: % 14.2% 12.8% 11.7% 10.8% 10.0%
Valuation Multiples @ Pricing and Trading (Including Overallotment):
Implied Post-Money Equity Value @ Pricing: $M $ 2,031.3 $ 2,245.4 $ 2,459.4 $ 2,673.4 $ 2,887.4
Implied Post-Money Equity Value @ Trading: $M 2,383.5 2,635.3 2,887.1 3,138.9 3,390.7
Implied Post-Money Enterprise Value @ Pricing: $M 1,662.1 1,876.2 2,090.2 2,304.2 2,518.2
Implied Post-Money Enterprise Value @ Trading: $M 2,014.3 2,266.1 2,517.9 2,769.7 3,021.5
Implied 2-Year Forward P / E Multiple at Pricing: x 47.2 x 52.2 x 57.1 x 62.1 x 67.1 x
Implied 2-Year Forward P / E Multiple at Trading: x 55.4 x 61.2 x 67.1 x 72.9 x 78.8 x
Implied 2-Year Forward TEV / EBITDA Multiple at Pricing: x 24.5 x 27.7 x 30.8 x 34.0 x 37.1 x
Implied 2-Year Forward TEV / EBITDA Multiple at Trading: x 29.7 x 33.4 x 37.1 x 40.8 x 44.5 x
Implied 2-Year Forward TEV / Revenue Multiple at Pricing: x 5.0 x 5.6 x 6.2 x 6.9 x 7.5 x
Implied 2-Year Forward TEV / Revenue Multiple at Trading: x 6.0 x 6.8 x 7.5 x 8.3 x 9.0 x
SPAC Model
($ in Millions USD Except Per Share and Per Unit Data)
Step 1 - SPAC IPO: Units: Units:
IPO Share Price: $ as Stated $ 10.00 Sponsor "Promote": % 20.0%
# Primary Shares Issued: M Shares 20.000
Warrants Sold to Sponsor: M Shares 5.000
(+) SPAC Shareholders: M Shares 20.000 Warrant Strike Price: $ as Stated $ 11.50
(+) Sponsor Promote Shares: M Shares 5.000 Price per Warrant: $ as Stated 1.00
Total Shares Post-IPO: M Shares 25.000
Upfront Underwriting Fee: % 2.5%
IPO Dollar Amount: $M 200.0 Deferred Underwriting Fee: % 2.5%
Post-IPO Equity Value: $M 250.0 Sponsor Cash Contribution: $M 5.0
(-) Cash: $M (200.0) Value of Sponsor's Shares: $M 50.0
(+) Debt: $M -
Post-IPO Enterprise Value: $M 50.0
"What Should Happen" - Share Price Decreases Based on Dilution from Sponsor Promote:
New Share Price: $ as Stated $ 8.00
Equity Value: $M 200.0 Sponsor Cash Contribution: $M 5.0
(-) Cash: $M (200.0) Value of Sponsor's Shares: $M 40.0
(+) Debt: $M -
Enterprise Value: $M -
Step 2 - SPAC Merger: Units: Units:
Target's 2-Year Forward Revenue: $M $ 335.7 Size of PIPE Investment: $M $ 87.5
TEV / Revenue Multiple: x 7.5 x PIPE Fee: % 2.5%
Target Enterprise Value: $M 2,517.9 Shares Owned By:
(-) Target Net Debt: $M 100.6 SPAC Shareholders: M Shares 20.000 7.5%
Target Equity Value: $M 2,618.5 Sponsor: M Shares 5.000 1.9%
PIPE Investors: M Shares 8.750 3.3%
Cash to Purchase Target: $M 287.5 Target Company: M Shares 233.098 87.4%
Equity Required: $M 2,331.0 Total: M Shares 266.848 100.0%
Required Share Issuance: M Shares 233.098 After Exercise of Warrants:
SPAC Shareholders: M Shares 20.000 7.4%
M&A Advisory Fee: % 0.5% Sponsor: M Shares 10.000 3.7%
PIPE Investors: M Shares 8.750 3.2%
Target Company: M Shares 233.098 85.7%
Total: M Shares 271.848 100.0%
Step 3 - SPAC vs. IPO:
SPAC Deal Structure: IPO Deal Structure:
Enterprise Value: $ 2,517.9 Enterprise Value: $ 2,517.9
(-) Net Debt: 100.6 (-) Net Debt: 100.6
Pre-Money Equity Value: 2,618.5 Pre-Money Equity Value: 2,618.5
(+) Net IPO Proceeds: 200.0 (+) Net IPO Proceeds: 233.0
(+) Net PIPE Proceeds: 87.5 (+) Net Overallotment Proceeds: 35.6
Post-Money Equity Value @ Trading: 2,906.0 Post-Money Equity Value @ Trading: 2,887.1
(-) IPO Pricing Discount: - (-) IPO Pricing Discount: (427.7)
Post-Money Equity Value @ Pricing: 2,906.0 Post-Money Equity Value @ Pricing: 2,459.4
(-) SPAC / Public Shareholders: (200.0) (-) SPAC / Public Shareholders: (287.5)
(-) Sponsor Promote: (50.0) (-) Sponsor Promote: -
(-) PIPE Investors: (87.5) (-) PIPE Investors: -
Equity Value to Existing Shareholders: 2,568.5 Equity Value to Existing Shareholders: 2,171.9
(+) Cash Proceeds: 287.5 (+) Cash Proceeds: 287.5
(-) Transaction Fees: (22.5) (-) Transaction Fees: (18.9)
Total Value to Existing Shareholders: 2,833.4 Total Value to Existing Shareholders: 2,440.5
Implied Ownership, Pre-Warrants: Implied Ownership, Pre-Warrants:
SPAC / Public Shareholders: 20.000 7.5% SPAC / Public Shareholders: 2.581 11.7%
Sponsor: 5.000 1.9% Sponsor: 0.000 0.0%
PIPE Investors: 8.750 3.3% PIPE Investors: 0.000 0.0%
Existing Shareholders: 233.098 87.4% Existing Shareholders: 19.513 88.3%
Total: 266.848 100.0% Total: 22.093 100.0%
Implied Ownership, Post-Warrants: Implied Ownership, Post-Warrants:
SPAC / Public Shareholders: 20.000 7.4% SPAC / Public Shareholders: 2.581 11.7%
Sponsor: 10.000 3.7% Sponsor: 0.000 0.0%
PIPE Investors: 8.750 3.2% PIPE Investors: 0.000 0.0%
Existing Shareholders: 233.098 85.7% Existing Shareholders: 19.513 88.3%
Total: 271.848 100.0% Total: 22.093 100.0%