In the number two add-on tab. We've got most things filled in already. We've got some assumptions. We've got our sources and uses of funds. We've even got some add-on financials. They're already built, great. But what I want to decide is which of these financials should go through to the acquirer LBO model? Do I want them to go through from this first projected year or only from the second projected year onwards or from the third year? Which year are we going to start with? Well, we're given an assumption near the top. We're told that the acquisition year is year two and the acquisition will happen at the end of the period.

Okay, great. So I know that means that we'll only want sales from not year one or year two. We'll only want sales from year three onwards. But how are we going to do that? Well, let's have a look at the sales forecast here. We've already built it, but nothing's coming through. It's linking through to the year three sales of 134.2 and it's then multiplying by this R25 is a full year of add-on ownership switch. So what we need is in this cell, I need a one to show that we own the company. This is a full year after the ownership. So let's build this up. I'm gonna build this in this third year to help it illustrate it best. And we're just going to use an if function.

I'm gonna say if the year we're in, in I14, so if our, our year three, if that's greater than the acquisition year. So I'll go back up to the top again. I'm gonna go to this two now that two's an F7 but if I click on it, we've named it. It's called add on year. So if three is greater than the add on year, what do I want? I just want a 1 to appear and if not, value if false onto to 0 and a 1 appears fantastic. Let's have a look at the financials underneath. And now they've started to populate in year three. So sales has come through.

Let's just copy it to the left though. Let's see what would've happened if we'd gone into year two. Ah, year two, that is sadly not after the acquisition year of year two, so we just get a 0 there. But if I go to year four, it does become a 1. Let's copy that all the way to the right. Scrolling down. I can now see my sales empty in years one and two, but populated from thereafter. Great synergies. That's our next issue. If we have a quick look at the synergies we've got, got synergies, percentage of prior year sales, but it starts at 3% and then 5%, and then eventually we get up to our run rate of 7.5%.

We have a problem though. These percentages aren't related to year 54, year one, and this 5% is not related to year 55, year two, they are related to the first and second year after acquisition. So we need another switch in row 26. We've got synergies, percentage starting from the first full year of ownership. So again, let's start in year three. I'm going to use an if function to help me out here. And I'm going to say if the switch is on. So if that's a 1, then I want to select from these percentages and I'll use an index function to help me do that. The index function asks me for the array, so I'm going to select all of those. I'll lock them so that it doesn't move.

It then asks me for the row number. Well, there's only one row, so I don't really have to do anything out here. I could write a 1, I could write a 0. But then the column number, this is the issue. I need to grab that first 3%. So what I'm gonna do is I'm gonna go up to my year count in I14. So that's a 3. And I'll just subtract the acquisition year. So at the moment, that'll give me 3 minus 2. So that will then go to the first column. So I can then close the brackets, comma 0, and I get that 3%. Great. Let me just copy it to the left. Yep, nothing comes through because we haven't got the switch on. But if I go to the right, yes, fantastic. We went up to year four, subtracted the acquisition, year two to get to 2. And if I go to the right again, I go up to year five, subtract 2, I get column three. That takes me down to the 7.5%. Fantastic. And if I copy all the across to the right, I can now start to populate my synergies in row 40. Now I'm gonna do this in year three to start with, and what I want is the synergies percentage, brilliant, but I then need to multiply it by the sales from the previous year. I'm gonna use an index function to help me out with that. So index, go up to the sales in row 29, select them and lock Which row do I want. I could write 0 or a 1, doesn't matter.

But which column do I want? I want them from the add on year from the prior year to this. So I can just type in, add on year, close the brackets, just check where that's linking to. Yep, going up 3% of the 130.3. Let's just double check it. Let's just do a calculation over here. If I did 3% multiplied by the previous year's sales, there's the 3.9.

I'll copy that to the left and then copy it to the right. Our add-on tab is now done.