Let's have a look around this model. We've got six colored tabs and we're gonna start in the input tab. In the input tab we've got all the inputs we need for this model. On the left hand side we start with the deal date and the fiscal year end. Underneath that, you've got your uses of funds not filled in yet, and to the right hand side we've got our sources of funds. On the right hand side of that we see that we've got some interest rates regarding those sources of funds. Underneath there are other assumptions, such as LIBOR rates, revolving credit facility commitment fee, original issuer discount years, et cetera. All of those will provide the inputs we need to build our model. So let's go onto the model tab now. Now the model tab, this looks at our target company and it forecasts it into the future, but it's just a standalone model. It's got all of the classics for a standalone three statement model. We've got the income statements. We've got underneath that a balance sheet and underneath that a cash flow statement. The standalone model is finished, it's done. However, it doesn't incorporate the actual buying of the company, maybe issuing lots of debt, the fact that we buy halfway through the year. So all of that has to happen on the deal dates tab. This tab will start off with December '17, the full year filled in. But then we have the tricky bit. The tricky bit says what happens during the year of '18. Well, we will need figures for the nine months to deal date. We'll then need any deal adjustments that happen on that date. Then we'll need to work out our figures immediately post deal and then for the three months post deal. So that will get us to December '18, and then we'll have the full year '19. Now it's that full year '19 that we then want to forecast into full year '20, '21, '22, et cetera, and that happens on the deal model tab. So on the deal model tab, here's December '17. We've got those same tricky columns again so nine months to '18. Then the adjustments, and then we'll end up with the full year to '19, and then 2021, et cetera. At the moment, these aren't filled in. You can see that the December '18 figures are just linking to the deal date tab. Once you've got that forecast model built, you can then start to work out how much cash you've got to start paying down debt which will get your IRR up, and that takes us onto the debt schedule. The debt schedule at the top starts off with lots of interest rates. They come from the input tab. Underneath that, you've got some debt issuance or repayment. It's mostly repayment.

And then we start to calculate our cash flow available for debt service, and then we start paying off debt and calculating interest.

Those figures will all then go back into the deal model. So we'll then have a completed income statement, balance sheet, and cash flow statements. Then we'll go onto the returns tab and in the returns tab here, we will work out our equity IRR.