We've got target company ABC, they've got their currency and we've got their current share price 26.92 The first issue we have is what premium should we pay? Here it's 56% and we've used comparable transactions to help drive that So that gets us from the current share price of 26.92 up to an acquisition share price of 42 Need to calculate that, one plus the premium percentage times current price We then want to multiply that share price by the number of diluted shares outstanding To get that you take your basic shares of 165.9 and then add on any net new shares from dilutive securities Here we've mentioned that this will include RSUs (restricted stock units), PSUs (performance stock units) and stock options We use the treasury stock method to calculate the dilution effect and that's calculated as the maximum of your acquisition share price Minus strike price, divided by the acquisition share price again, times by the number of units (so that could be RSUs, PSUs or stock options) We want the maximum of all of that and zero, we want to make sure this figure is a positive (doesn't go below zero) So if take the acquisition share price, times it by diluted shares outstanding, that will get me my acquisition equity value of 7,065.6 I then want to get from there to enterprise value, so I'll add on net debt and any other claims on the business to get to my EV And I can then calculate my historical or last 12 months EBITDA multiple So divide the EV by EBITDA to get 6.8 We'll see on the next slide that your entry multiple is also going to be the same as your exit multiple So our exit year is year 5 and the shorter the time horizon, the higher the returns to equity holders There's our exit EBITDA multiple, as we've said normally set to your entry multiple We've then got some fees, we've got debt financing fees here. They're 1% of your debt issued Those fees and the advisory fees are going to be one of the uses of funds Now debt fees are amortized, you can spread them in this case over five expense period However your advisory fees are expensed immediately Last up we've got the interest assumptions Your assumptions here are on base interest rates, we're going to assume that our debt tranches are priced I.e. interest rates on them. Are priced by a spread over base rates