The stub period for the income statement requires us to work in column I, three months post deal and for the balance sheet, that'll mean at year end. We'll need to do the calculation section here, which will provide important numbers, such as depreciation and amortization. And then we'll be doing the income statement underneath. So where are we going to get these numbers from? Well, I'm gonna have to find the ending figure for the last period. That's from the previous column, and I'll find that in the balance sheet underneath. So I'll scroll down. This is net PP&E we're doing here. So I've got last period's, 569. That becomes my beginning period, but now we go on to CapEx. What we have in the Model tab is we have the standalone model and we have CapEx forecasted there. What I need to do is I need to find that figure and then I need to take just 25% of it. So there is the CapEx figure, 79.7. I'm going to multiply that by the Postdeal_Percent. The Postdeal_Percent is the stub period percentage, the three months of the year that we're going to own the company for. That gives me the CapEx for the three months and if I copy that down, I get the depreciation figure as well, 27.3. And I can then sum the items above. Now I've got my PP&E going forward and importantly, I've got depreciation to go in the income statement. I can do exactly the same thing for intangibles. I scroll down to the balance sheet. I find the intangibles figure.

That becomes the beginning of the stub period and I can get amortization from the Model tab. I find the 4.5 amortization, but I multiply that by the Postdeal_Percent.

While we're here, we'll do equity as well. Again, get that from the balance sheet underneath.

That becomes beginning. And then the net income, I can link that to the bottom of the income statements that we haven't yet filled in. Dividends, exactly the same.

Those figures we'll fill in as we finish the income statement. So now on to sales. And we need to think about what sales are occurring in this stub period. And it's just the sales from the three months that we're going to own the company during that stub period. So we go to the model tab, scroll down until we find sales and then I multiply that by the post-deal percent. I'm gonna copy that down to the cell below but we've got an extra item that we can add on here. We may have some EBITDA improvement due to cost cutting. At the top of this page, we've got EBITDA margin improvement, but at the moment, it's 0%. So we'll multiply that by sales. The EBITDA remains unchanged. Depreciation, we calculated further up. And amortization, again, we calculated that in the intangibles calculation.

Now we've got EBIT, we can move on to the interest. Our historical net finance charge won't remain anymore, so I can just hard code a zero in there. But all of these new items, amortization of OID, et cetera, we're gonna leave them blank. We'll fill in interest later on. So I now go down to profit before tax, but I'm going to sum all of those blank cells so that all of the things flow through when we do eventually fill this in.

27.7, I now need to tax that figure and I can't get that from the standalone model because that profit before tax will change dramatically once the interest goes in. So I take that and I need to multiply that by the tax rate and we've got that up near the top of this page. Effective tax rate of 21%.

Net income then becomes the sum of profit before tax and tax expense. And lastly, dividends. We're going to assume no dividends in this LBO, so I'll hard code in a zero.