MODEL OVERVIEW
 
An Equity Private Placement (EPP) involves the sale of equity to one or more investors with the purpose of raising capital for business expansion, working capital or strategic initiatives and/or enabling existing shareholders to realize returns on their equity. An equity private placement helps to avoid the complexities and regulatory requirement of a public offering.
 
Our comprehensive EPP financial model is designed to project and analyze the financial outcomes of an EPP. It equips users to:
Perform Valuations: Utilise discounted cash flow (DCF) and comparative analysis methods to determine the company’s intrinsic value and the ideal EPP offer price.
Model EPP Proceeds: Calculate gross and net EPP proceeds, incorporating overallocation (Greenshoe) adjustments, primary and secondary share allocations as well as fee.
Determine Ownership Changes: Assess the impact of the EPP on ownership structures and issued share capital.
Evaluate Post-EPP Valuations: Analyse post-EPP valuations after investing the proceeds, providing insights into returns for both existing and new shareholders.
Compare pre and post EPP Financial Metrics: Contrast key financials and ratios pre- and post-EPP to gain a clearer understanding of the impact of the EPP.
Run Scenario Analyses: Explore various scenarios for key EPP variables to assess potential impacts and prepare for uncertainties.
 
This model adheres to best practices in financial modeling, incorporating clear instructions, checks, and input validations to ensure accuracy and ease of use.
 
 
KEY OUTPUTS
 
Key EPP outputs including offer price, valuation, gross and net EPP proceeds, issued share capital and postEPP ownership and returns
Valuations pre and post EPP to determine ideal offer price, impact of EPP and returns for new and existing shareholders
Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) across 5 years presented on a yearly basis for the company pre and post EPP;
Ratio Analysis based on projected financial statements
Charts comparing pre and post EPP key financial metrics and ratios
 
 
KEY INPUTS
 
Setup Inputs:
Names of transaction and company;
Currency;
EPP Date;
Companies for comparative analysis;
Naming for current and new shareholders
Naming for EPP scenarios;
 
Assumptions:
Latest P&L and balance sheet actuals;
Forecast income statement and balance sheet assumptions with and without EPP proceeds
Valuation inputs including key financials for comparative companies, discount rates and terminal growth rates;
EPP assumptions including offer price discounts, primary and secondary share, overallocation adjustments and expected EPP fees under 3 scenarios.
Proforma opening balance sheet adjustments.
 
 
MODEL STRUCTURE
 
The model comprises of 8 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs which include ‘i_Setup’ for model and transaction general assumptions and ‘i_Pre_PP’ for specific projection assumptions relating to the company pre-EPP and ‘i_Post_PP’ for the detailed EPP related assumptions. The calculation tabs uses the user-defined inputs to calculate and produce the projection outputs which are presented in the calculation tabs and ‘o_Dashboard’ tab.
 
 
KEY FEATURES
 
The model follows good practice financial modelling guidelines and includes instructions, checks and input validations to help ensure input fields are populated accurately;
The model enables the user to prepare projections across 5 years and valuations for the business on a pre and post-EPP basis;
The model includes the possibility to model 3 scenarios for key EPP assumptions including offer discount rates, EPP fees and expected changes in projections post EPP.
The model is not password protected and can be modified as required following download;
The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
Apart from projecting revenue and costs the model includes the possibility to model receivables and payables, inventory, fixed assets, borrowings, dividends and corporate tax;
Business name, currency, timeline and EPP date are fully customisable;
The model included valuations on both discounted cash flow basis (DCF) and comparative analysis basis with user-define weights for each approach;
The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors. 
 
 
SUPPORT / MODIFICATIONS
 
We are keen to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind and include instructions, line-item explanations, checks and input validations to ensure they are as user-friendly and easy to use as possible without requiring extensive knowledge of Microsoft Excel, finance or accounting. If any questions do arise, we are more than happy to assist. We are also happy to support with any be-spoke modifications you may require to the models to better suit your business needs. To get in touch, please send us a message through the website or contact us on: hello@useprojectify.com
 
We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.