Finance models: follow every cell

Initial teaching values, formulas and results in reading order. Fictional examples, not transaction advice. Inputs are unchanged from the XLSX workbook. For changed inputs, use the workbook and its guide.

Maple

A1. C03 teaching example — all amounts GBP thousands

B1. Value / formula

A2. Revenue

B2 — Supplied value. Result: 200.

A3. Operating costs

B3 — Supplied value. Result: 150.

A4. Simplified operating profit

B4 — Formula. =B2-B3; Result: 50.

A5. Enterprise value

B5 — Supplied value. Result: 300.

A6. Included debt

B6 — Supplied value. Result: 45.

A7. Included cash

B7 — Supplied value. Result: 15.

A8. Reference equity value

B8 — Formula. =B5-B6+B7; Result: 270.

A9. Secondary fraction

B9 — Supplied value. Result: 0.8.

A10. Seller consideration

B10 — Formula. =B8*B9; Result: 216.

A11. Separate primary company cash

B11 — Supplied value. Result: 20.

A12. Book assets (separate illustration)

B12 — Supplied value. Result: 150.

A13. Book liabilities

B13 — Supplied value. Result: 90.

A14. Book equity

B14 — Formula. =B12-B13; Result: 60.

A15. Assets after primary cash

B15 — Formula. =B12+B11; Result: 170.

A16. Equity after primary cash

B16 — Formula. =B14+B11; Result: 80.

A17. Balance check — must be zero

B17 — Formula. =B15-B13-B16; Result: 0.

A18. Book equity, price and distributable profits are not interchangeable.

Alder price

A1. B08 teaching example — GBP, not Meridian assessment

B1. Value / formula

A2. Enterprise value

B2 — Supplied value. Result: 1e+07.

A3. Included debt

B3 — Supplied value. Result: 2e+06.

A4. Included cash

B4 — Supplied value. Result: 500,000.

A5. Working-capital adjustment (negative = shortfall)

B5 — Supplied value. Result: -200,000.

A6. Reference equity value

B6 — Formula. =B2-B3+B4+B5; Result: 8.3e+06.

A7. Secondary fraction

B7 — Supplied value. Result: 0.8.

A8. Seller consideration

B8 — Formula. =B6*B7; Result: 6.64e+06.

A9. Separate primary cash to company

B9 — Supplied value. Result: 1e+06.

A10. Payoff funding is a separate cash-flow question; price deduction does not pay a lender.

Service credits

A1. A09 teaching example — raw percentage compared before rounding

B1. Value / formula

A2. Monthly subscription GBP

B2 — Supplied value. Result: 8,000.

A3. Availability as percentage points (99.2, not 0.992)

B3 — Supplied value. Result: 99.2.

A4. Single applicable rate

B4 — Formula. =IF(B3>=99.5,0,IF(B3>=99,0.05,IF(B3>=98,0.1,0.2))); Result: 0.05.

A5. Credit GBP

B5 — Formula. =B2*B4; Result: 400.

A6. Boundary availability

B6. Expected rate

C6. Calculated rate

D6. Match (1 = yes)

A7 — Supplied value. Result: 99.5.

B7 — Supplied value. Result: 0.

C7 — Formula. =IF(A7>=99.5,0,IF(A7>=99,0.05,IF(A7>=98,0.1,0.2))); Result: 0.

D7 — Formula. =IF(B7=C7,1,0); Result: 1.

A8 — Supplied value. Result: 99.4999.

B8 — Supplied value. Result: 0.05.

C8 — Formula. =IF(A8>=99.5,0,IF(A8>=99,0.05,IF(A8>=98,0.1,0.2))); Result: 0.05.

D8 — Formula. =IF(B8=C8,1,0); Result: 1.

A9 — Supplied value. Result: 99.

B9 — Supplied value. Result: 0.05.

C9 — Formula. =IF(A9>=99.5,0,IF(A9>=99,0.05,IF(A9>=98,0.1,0.2))); Result: 0.05.

D9 — Formula. =IF(B9=C9,1,0); Result: 1.

A10 — Supplied value. Result: 98.9999.

B10 — Supplied value. Result: 0.1.

C10 — Formula. =IF(A10>=99.5,0,IF(A10>=99,0.05,IF(A10>=98,0.1,0.2))); Result: 0.1.

D10 — Formula. =IF(B10=C10,1,0); Result: 1.

A11 — Supplied value. Result: 98.

B11 — Supplied value. Result: 0.1.

C11 — Formula. =IF(A11>=99.5,0,IF(A11>=99,0.05,IF(A11>=98,0.1,0.2))); Result: 0.1.

D11 — Formula. =IF(B11=C11,1,0); Result: 1.

A12 — Supplied value. Result: 97.9999.

B12 — Supplied value. Result: 0.2.

C12 — Formula. =IF(A12>=99.5,0,IF(A12>=99,0.05,IF(A12>=98,0.1,0.2))); Result: 0.2.

D12 — Formula. =IF(B12=C12,1,0); Result: 1.

Cap table

A1. B16 separate clean financing — no pool increase or convertible

B1. Value / formula

A2. Founder issued shares

B2 — Supplied value. Result: 450,000.

A3. Other issued shares

B3 — Supplied value. Result: 450,000.

A4. Included unexercised options

B4 — Supplied value. Result: 100,000.

A5. Pre-money diluted denominator

B5 — Formula. =B2+B3+B4; Result: 1e+06.

A6. Pre-money GBP

B6 — Supplied value. Result: 4e+06.

A7. Primary investment GBP

B7 — Supplied value. Result: 1e+06.

A8. Price per share GBP

B8 — Formula. =B6/B5; Result: 4.

A9. New issued shares

B9 — Formula. =B7/B8; Result: 250,000.

A10. Post-money diluted total

B10 — Formula. =B5+B9; Result: 1.25e+06.

A11. Post-money issued total

B11 — Formula. =B2+B3+B9; Result: 1.15e+06.

A12. Founder diluted fraction

B12 — Formula. =B2/B10; Result: 0.36.

A13. Other holders diluted fraction

B13 — Formula. =B3/B10; Result: 0.36.

A14. Options diluted fraction

B14 — Formula. =B4/B10; Result: 0.08.

A15. Investor diluted fraction

B15 — Formula. =B9/B10; Result: 0.2.

A16. Investor issued fraction

B16 — Formula. =B9/B11; Result: 0.217391.

A17. Diluted fractions — must equal one

B17 — Formula. =B12+B13+B14+B15; Result: 1.

A18. Investment reconciliation — must equal zero

B18 — Formula. =B9*B8-B7; Result: 0.

A19. No authority, title, class-vote or option-approval conclusion follows from this model.

Preferences

A1. B15 — equity proceeds; one preferred class; no debt/costs

B1. Value / formula

A2. Investment GBP

B2 — Supplied value. Result: 2e+06.

A3. As-converted fraction

B3 — Supplied value. Result: 0.25.

A4. Equity exit GBP

B4. Non-participating investor

C4. Other holders

D4. Participating investor

E4. Other holders

A5 — Supplied value. Result: 0.

B5 — Formula. =MAX(MIN($B$2,A5),A5*$B$3); Result: 0.

C5 — Formula. =A5-B5; Result: 0.

D5 — Formula. =MIN($B$2,A5)+MAX(A5-$B$2,0)*$B$3; Result: 0.

E5 — Formula. =A5-D5; Result: 0.

A6 — Supplied value. Result: 1e+06.

B6 — Formula. =MAX(MIN($B$2,A6),A6*$B$3); Result: 1e+06.

C6 — Formula. =A6-B6; Result: 0.

D6 — Formula. =MIN($B$2,A6)+MAX(A6-$B$2,0)*$B$3; Result: 1e+06.

E6 — Formula. =A6-D6; Result: 0.

A7 — Supplied value. Result: 4e+06.

B7 — Formula. =MAX(MIN($B$2,A7),A7*$B$3); Result: 2e+06.

C7 — Formula. =A7-B7; Result: 2e+06.

D7 — Formula. =MIN($B$2,A7)+MAX(A7-$B$2,0)*$B$3; Result: 2.5e+06.

E7 — Formula. =A7-D7; Result: 1.5e+06.

A8 — Supplied value. Result: 1.2e+07.

B8 — Formula. =MAX(MIN($B$2,A8),A8*$B$3); Result: 3e+06.

C8 — Formula. =A8-B8; Result: 9e+06.

D8 — Formula. =MIN($B$2,A8)+MAX(A8-$B$2,0)*$B$3; Result: 4.5e+06.

E8 — Formula. =A8-D8; Result: 7.5e+06.

A9. Participating means uncapped 1x plus fraction of residual under these assumed terms only.

Funding

A1. B17 separate fixed-price deal — GBP millions

B1. Value / formula

A2. New lender cash

B2 — Supplied value. Result: 6.

A3. Sponsor cash

B3 — Supplied value. Result: 4.5.

A4. Total cash sources

B4 — Formula. =B2+B3; Result: 10.5.

A5. Seller cash

B5 — Supplied value. Result: 8.

A6. Existing lender payoff

B6 — Supplied value. Result: 2.

A7. Fees

B7 — Supplied value. Result: 0.5.

A8. Total cash uses

B8 — Formula. =B5+B6+B7; Result: 10.5.

A9. Surplus (negative = funding gap)

B9 — Formula. =B4-B8; Result: 0.

A10. Rollover, uncalled commitments and unapproved target cash are not available cash in this example.