We need to work out the position of our target company at the deal date. We can see at the top here that the deal date is the 30th of September '18 and the fiscal year end is December '18. So what percentage of the year is pre-deal and post-deal? Well, we can use that YEARFRAC function to help us out here. I'm gonna put the deal date first then I'll put the year end second. And I can see that 25% of the year is post-deal date. The pre-deal must be the remainder so I'll take one minus the 25% to get 75%. I now want to work out our income payment and balance sheet at that date. So I scroll down and I'm gonna start with these calculations. I want to find this in column F at September '18. I'm gonna start with net PP&E. In order to do this, I go and find the ending PP&E from last year. And if we scroll down, we've got a balance sheet available to us. Net PP&E was 591.2. The beginning figure next year is going to be that same amount but now I need the CapEx. For this, I can go to the standalone model. Let's go to the model tab and we can scroll down. And in the calculation section here, we've already got a CapEx figure but that figure is at December '18. So I don't want all of that. I just want 75% of it. So I'm gonna multiply it by the pre-deal percentage. Now luckily, we actually named that pre-deal percentage, that 75% pre-deal unscored percent. So if I press Enter, that's now taken just 75% of that I can copy that down. And that does exactly the same for depreciation. It goes to the Model tab, goes to cell I30 and multiplies it by the pre-deal percent. I can then sum up those items above and voila, I've got net PP&E at September '18. We need to do exactly the same for intangibles. So I'll link down to the balance sheet to find our ending figure last year. That becomes the beginning next year and I can copy that appreciation figure down and that now gives me amortization. Let's just check model I35. Yep, that is amortization on the Model tab.

The last one is equity. I link down.

That becomes my beginning figure and net income I don't link to the Model tab. Instead, I'm gonna link it to the income statement here. Dividends, I'll also link to the income statement here. That will be a negative there so I don't need to make a negative in my base, my beginning and subtract ending calculation we're doing here. So those figures we'll fill in in just a second. Now let's do the income statement. The income statement, again, I go to the Model tab, scroll down, and I take the December '18 sales but I want to multiply that by the Predeal_Percent. So I get 2,215.2. I can copy that, make that my EBITDA and my depreciation and my amortization the same for the historical net finance charge.

But when I do it for the tax expense, unfortunately, it ends up linking to the wrong cell. It's now linking down to current assets in the balance sheet on the Model tab. So I need to change what that's linking to. Luckily, because I've done this before, I know it links to row 55, but let's just double check that. And that is linking to the tax expense. Again, I can copy that down and paste it in dividends. I now just need to do my subtotals. So income statement, start with EBIT, that's my EBITDA and I take off D and A. My profit before tax. The sum of all the items above, including EBIT gets me 83 and net income, profit before tax, and I sum that tax expense to get to 65.5.