Let's have a look through the add-on model. Do a quick tour through it before we start building it. At the bottom you can see we've got three different sheets. We've got the number one LBO base case two, add-on, and three base case plus add-on.

The number one tab is the base case LBO model on its own, and it's a full LBO model here. We've got assumptions at the top. We've got LTM EBITDA, you've got your maximum debt. We've got sources and uses of funds over on the right hand side. Underneath that, we've then got an income statement and that carries on down to debt, pay down cash flows, equity holders, everything. And then finally at the bottom we get down to the IRR.

This model is standalone. It's looking at the base case company being acquired, but there's no add-on here. The add-on company is modeled completely separately on the number two tab.

Now it starts off very similarly. We've got some assumptions at the topic. Our EBITDA multiple got LTM EBITDA. Underneath that, we've got some financials here. We've got our add-on financials and some of them will be add-on financials for the acquirer LBO model. But this is not a full model in itself. There's no IRR on this sheet here at all. We're not buying the add-on on its own. We don't need to do a model for it. What we've got is the ability to add the number two tab and the one tab together to create the three tab. So let's go have a look at that on the three tab. We've still got some assumptions here that we still need on this tab. And as I scroll down, we'll start to merge the one and two tabs together. Let's have a look here. We've got sales for the base case company and then you've got sales of the add-on. Then we've got EBIT for the base case and cost savings for the base case. Then we've got the EBIT for the add-on, and underneath this we merge the two different companies debts. And then at the bottom we'll come up with the IRR. Fingers crossed we'll get an IRR that's higher when we include the add-on acquisition. And that means we should buy it.