Preferred scenario
Scenario A — with PEPAC
Capital invested 450.0 k€
IRR 8.23%
MOIC 3.12×
- Exit proceeds
- €384,000
- Cumulative to exit
- €954,113
- Investor payback
- Year 12
Investor economics
Illustrative metrics from the current model. Corporate structure, distribution and exit valuation are negotiable.
Term sheet assumptions
- Economic stake
- 40%
- Distribution of positive cash flow
- 70%
- Retained in the operation
- 30%
- Modelled exit year
- Year 20
- Exit multiple
- 4×
On the year 20 EBITDA. Preliminary metrics. They do not constitute an investment offer or a guarantee of return.
Scenario comparison
Independent scenario
Scenario B — without PEPAC
Capital invested 650.0 k€
IRR 5.39%
MOIC 2.16×
- Exit proceeds
- €384,000
- Cumulative to exit
- €754,113
- Investor payback
- Year 15
Cumulative investor cash flow
Year 20 EBITDA and exit valuation
| Gross revenue | €340,000 |
|---|---|
| Farming costs | -€60,000 |
| Overhead costs | -€40,000 |
| EBITDA | €240,000 |
| Exit valuation (4×) | €960,000 |
| Investor share of the exit | €384,000 |
Note
Year 20 is an on-year. A genuinely normalised valuation would use the average of an on-year and an off-year, which would lower the exit by roughly a sixth.
Investor cash flows
Annual distributions and exit proceeds under the selected scenario. — Scenario A — with PEPAC
| Year | Project cash flow (€) | Distribution to investor (€) | Exit proceeds (€) | Investor cash flow (€) | Cumulative (€) |
|---|---|---|---|---|---|
| 0 | -498,500 | 0 | — | -450,000 | -450,000 |
| 1 | -24,076 | 0 | — | 0 | -450,000 |
| 2 | -24,076 | 0 | — | 0 | -450,000 |
| 3 | -24,076 | 0 | — | 0 | -450,000 |
| 4 | -24,076 | 0 | — | 0 | -450,000 |
| 5 | -24,076 | 0 | — | 0 | -450,000 |
| 6 | 54,324 | 15,211 | — | 15,211 | -434,789 |
| 7 | 148,724 | 41,643 | — | 41,643 | -393,147 |
| 8 | 242,924 | 68,019 | — | 68,019 | -325,128 |
| 9 | 310,124 | 86,835 | — | 86,835 | -238,293 |
| 10 | 344,924 | 96,579 | — | 96,579 | -141,714 |
| 11 | 219,924 | 61,579 | — | 61,579 | -80,136 |
| 12 | 319,924 | 89,579 | — | 89,579 | 9,443 |
| 13 | 219,924 | 61,579 | — | 61,579 | 71,022 |
| 14 | 319,924 | 89,579 | — | 89,579 | 160,600 |
| 15 | 187,924 | 52,619 | — | 52,619 | 213,219 |
| 16 | 307,924 | 86,219 | — | 86,219 | 299,438 |
| 17 | 207,924 | 58,219 | — | 58,219 | 357,657 |
| 18 | 307,924 | 86,219 | — | 86,219 | 443,875 |
| 19 | 187,924 | 52,619 | — | 52,619 | 496,494 |
| 20 | 262,924 | 73,619 | 384,000 | 457,619 | 954,113 |
| 21 | 187,924 | 0 | — | 0 | 954,113 |
| 22 | 287,924 | 0 | — | 0 | 954,113 |
| 23 | 187,924 | 0 | — | 0 | 954,113 |
| 24 | 287,924 | 0 | — | 0 | 954,113 |
| 25 | 175,924 | 0 | — | 0 | 954,113 |
| 26 | 275,924 | 0 | — | 0 | 954,113 |
| 27 | 175,924 | 0 | — | 0 | 954,113 |
| 28 | 275,924 | 0 | — | 0 | 954,113 |
| 29 | 175,924 | 0 | — | 0 | 954,113 |
| 30 | 275,924 | 0 | — | 0 | 954,113 |
Preliminary metrics. They do not constitute an investment offer or a guarantee of return.