Mini-Model

$ in thousands

Sources Summary Projected Financials

Revolver $ --
Unitranche Term Loan 4,075.0 Year 2022A 2023P 2024P
Seller Note -- Revenue $10,434.0 $11,216.6 $12,057.8
Roll-over Equity -- % growth 7.5% 7.5%
SGC 1,254.2
Total Sources $5,329.2 Gross Profit $2,191.0 $2,355.5 $2,532.1
% margin 21.0% 21.0% 21.0%

Uses EBITDA $926.2 $437.6 $470.4

Purchase Price $ 5,029.2 % margin 8.9% 3.9% 3.9%
Cash to Balance Sheet 100.0 % growth (52.8%) 7.5%
Transaction Fees 200.0
Financing Fees -- Net Income $841.0 $96.8 $129.4
Total Uses $5,329.2 % margin 8.1% 0.9% 1.1%
% growth (88.5%) 33.6%

Summary Returns Balance Sheet 2022PF

Entry Multiple Cash $100.0 ($12.2) ($20.6)
(20.1%) 5.0 x 5.5 x 6.0 x Debt 4,075.0 4,077.3 4,166.5
5.0 x 3.7% (1.4%) (10.7%) Net Debt $3,975.0 $4,089.4 $4,187.1
Mult.
Exit

5.5 x (6.6%) (10.7%) (12.7%)

6.0 x (10.7%) (12.7%) (12.7%) Cash Flow
Change in NWC (Incl LTA/LTL) ($31.9) ($34.3)
Capital Expenditures 112.2 120.6

Circuit Breaker Credit Metrics

Switch Off Debt / EBITDA 4.4 x 9.3 x 8.9 x
EBITDA / Cash Interest Expense 3.8 1.9 2.3

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 x Assumptions and Inputs
Purchase Price Exit Assumptions Equity Value to Sellers
Purchase EBITDA $926.2 Exit EBITDA Multiple 5.4 x Total Enterprise Value
Entry EBITDA Multiple 5.4 x Exit Year for Sensitivity Tables 2004 Less: Debt
Total Enterprise Value $5,029.2 Management Searcher Pool -- Plus: Cash
Earn out -- Management Earnout 1% Equity Value to Sellers
Total Enterprise Value $5,029.17 Tied to Revenue or EBITDA Revenue
Earnout Growth Goal YoY --

Management Fee Ownership

Minimum $ -- Previous Owner
Management Fee % of EBITDA -- Partners
Total

Proceeds
Previous Owner
Partners
Total

Debt Assumptions Other Financing Assum

Tranche Int. Rate Floor % Amort % Sweep x EBITDA Amount Revolver Facility
Revolver L+500 -- -- Unused Revolver Fee
Seller Note L+700 -- -- -- -- --
Unitranche Term Loan L+500 3.00% 10.0% 0% 4.40 x 4,075.0 Minimum Cash
Total $4,075.0 Circuit Breaker (1=Avg Int
Financing Fee Amortiza
Interest Rate on Cash

x Sources & Uses

Sources Uses Pro Forma Ownership
x EBITDA $ x EBITDA $
Revolver -- -- Purchase Price 5.4 x $5,029.2 Previous Owner
Unitranche Term Loan 4.4 x 4,075.0 Cash to Balance Sheet 0.1 x 100.0 Previous Partner
Seller Note -- -- Transaction Fees 0.2 x 200.0 SGC
Roll-Over Equity -- -- Financing Fees -- --
SGC 1.4 x 1,254.2
Total Sources 5.8 x $5,329.2 Total Uses 5.8 x $5,329.2 Total Equity

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 x Income Statement
Year 2021A 2022A 2023P 2024P
Revenue $9,599 $10,434 $11,217 $12,058
Cost of Goods Sold $7,584 $8,243 $8,861 $9,526
Gross Margin $2,015 $2,191 $2,355 $2,532
Operating Expenses $1,152 $1,343 $1,963 $2,110
Earnings Before Other Income $863 $848 $393 $422
Other Income (Expense) -- -- -- --
EBIT $863 $848 $393 $422
Taxes $11 $7 $63 $85
Interest Expense -- -- $232 $208
Management Fee -- -- -- --
Net Income $852 $841 $97 $129

EBITDA as Defined
Interest $36 $36 $232 $208
Taxes $11 $7 $63 $85
Depreciation $49 $42 $45 $48
Amortization -- --
Seller Add Back
EBITDA $948 $926 $438 $470

Is Other Income Reoccuring? No

Drivers
Revenue growth 7.5% 8.7% 7.5% 7.5%
Gross Margin 21.0% 21.0% 21.0% 21.0%
OpEx % of Revenue 17.5% 12.87% 17.5% 17.5%
Tax Rate 39.6% 0.07% 39.6% 39.6%

x Balance Sheet Items & CapEx

Year 2021PF 2022PF 2023P 2024P
Accounts Receivable $254.8 $271.5 $ 291.8 $ 313.7
Inventory $562.9 645.1 $ 693.5 $ 745.5
Other Current Assets $58.8 5.9 $ 6.3 $ 6.8
Other Long-Term Assets $79.8 47.3 $ 50.8 $ 54.6
CA + LTA (Ex PP&E) $956.3 $969.7 $1,042.4 $1,120.6

Accounts Payable $159.6 $84.3 $90.6 $97.4

Accrued Liabilities & Other $332.8 377.3 $405.5 $436.0
Other Long-Term Liabilities $136.4 82.9 $89.1 $95.8
CL + LTL $628.7 $544.4 $585.3 $629.1

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 Rev $10,434.0 $11,216.6 $12,057.8

CA + LTA (Ex PP&E) % of Revenue 9.3% 9.3% 9.3%

CL + LTL % of Revenue 5.2% 5.2% 5.2%

Capital Expenditures % of Revenue 1% 1%

Depreciation % of Revenue 0.51% 0.40% 0.4% 0.4%

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 x Cash Flow Statement
Year 2023P 2024P
Net Income $96.8 $129.4
Depreciation 45.0 48.4
Amortization of Deferred Financing Fees -- --
Change in CA + LTA (72.7) (78.2)
Change in CL + LTL 40.8 43.9
Cash Flow from Operating Activities $109.9 $143.4

Capital Expenditures ($112.2) ($120.6)

Cash Flow from Investing Activities ($112.2) ($120.6)

Revolver $409.8 $496.8

Mandatory Repayment of Debt (407.5) (407.5)
Optional Repayment of Debt -- --
Earnout Payment (112.2) (120.6)
Cash Flow from Financing Activities ($109.9) ($31.3)

Cash, Beginning $100.0 ($12.2)

Net Change in Cash (112.2) (8.4)
Cash, Ending ($12.2) ($20.6)

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 x Debt Schedule
Year 2022PF 2023P 2024P
Borrowings / (Repayments) Under Revolver
Revolver Beginning Balance -- $409.8
Plus: Beginning Cash 100.0 (12.2)
Plus: Free Cash Flow before Revolver (409.8) (384.6)
Less: Minimum Cash (100.0) (100.0)
Borrowings / (Repayments) 409.8 496.8
Revolver Ending Balance -- $409.8 $906.5
Beginning Undrawn Balance -- --
Ending Undrawn Balance -- --

Unitranche Term Loan

Beginning Balance $4,075.0 $3,667.5
Less: Mandatory Repayment (407.5) (407.5)
Less: Optional Repayment -- --
Ending Balance $4,075.0 $3,667.5 $3,260.0

Seller Note
Beginning Balance -- --
Less: Mandatory Repayment -- -- --
Less: Optional Repayment -- --
Ending Balance -- -- --

Total Debt
Revolver -- $409.8 $906.5
Unitranche Term Loan 4,075.0 3,667.5 3,260.0
Seller Note -- -- --
Total $4,075.0 $4,077.3 $4,166.5

x Interest Schedule
Year 2022PF 2023P 2024P
LIBOR (bps) Step 25 -- 25

Effective Interest Rate Int. Rate Floor

Revolver L+500 -- 5.00% 5.00% 5.25%
Unitranche Term Loan L+500 1.00% 6.00% 6.00% 6.00%
Seller Note L+700 3.00% 10.00% 10.00% 10.00%
SGC L+650 1.50% 8.00% 8.00% 8.00%

Interest Expense & Preferred Stock

Revolver -- $10.2 $34.6

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 Unitranche Term Loan 244.5 232.3 207.8
Seller Note -- -- --
SGC Preferred Stock 1,254.2 100.3 108.4

Unused Revolver Fee -- --

Amortization of Deferred Financing Fees -- -- --
Interest Expense, gross $244.5 $232.3 $207.8
Less: Interest Income -- -- --
Interest Expense, net $244.5 $232.3 $207.8
Memo: Cash Interest Expense $244.5 $232.3 $207.8

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 x Exit Valuation and Returns Schedule
Year 2022PF 2023P 2024P
EBITDA $437.6 $470.4
Exit Multiple 5.4 x 5.4 x
Enterprise Value $2,376.0 $2,554.2
Less: Debt (4,077.3) (4,166.5)
Plus: Cash (12.2) (20.6)
Less: Management Earnout (112.2) (120.6)
Less: Preferred Stock (100.3) (108.4)
Equity Value ($1,926.0) ($1,861.9)
Less: Management Option Pool -- --
Equity Value to SGC and Rollover -- --
Less: Rolled Equity -- --
Equity Value to SGC $0.00 $0.00

Cash Flow to SGC MOIC IRR Initial

1999 0.1 x -- ($1,254.2) $100.3
2000 0.1 x -- (1,254.2) $100.3 --
2001 0.2 x -- (1,254.2) $100.3 $108.4
2002 0.3 x -- (1,254.2) $100.3 $108.4
2003 0.4 x (150.6%) (1,254.2) $100.3 $108.4
2004 0.5 x (20.1%) (1,254.2) $100.3 $108.4

Cash Flow to Searcher MOIC IRR Initial

1999 -- Err:523 ($0.0) -- --
2000 % of EO 100% 11216.6 x 1,121,555.0% ($0.0) $112.2 --
2001 % of OP 100% 23274.3 x 1,121,662.5% ($0.0) $112.2 $120.6
2002 36236.5 x -- ($0.0) $112.2 $120.6
2003 OFF 50170.8 x -- ($0.0) $112.2 $120.6
2004 OFF 65150.1 x 1,121,662.5% ($0.0) $112.2 $120.6

Cash Flow to Prev. Owner + Incentive MOIC IRR Initial

1999 -- -- ($1.0) -- --
2000 % of EO 0% -- -- (1.0) -- --
2001 % of OP 0% -- -- (1.0) -- --
2002 -- -- (1.0) -- --
2003 % of EO ON -- -- (1.0) -- --
2004 % of OP ON -- -- (1.0) -- --

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 x Sensitivity Analyses
SGC Assuming 2004 Exit
MOIC Return IRR

Entry Multiple Entry

0.5 x 4.5 x 5.0 x 5.5 x 6.0 x 6.5 x (20.1%) 4.5 x 5.0 x
4.5 x 0.6 x 0.6 x 0.6 x 0.6 x 0.6 x 4.5 x (10.7%) (12.5%)
Exit Multiple

Exit Multiple
5.0 x 1.2 x 1.1 x 0.9 x 0.9 x 0.8 x 5.0 x 4.7% 1.2%
5.5 x 1.9 x 1.5 x 1.3 x 1.2 x 1.1 x 5.5 x 12.9% 8.7%
6.0 x 2.5 x 2.0 x 1.7 x 1.5 x 1.3 x 6.0 x 18.7% 14.2%
6.5 x 3.1 x 2.5 x 2.1 x 1.8 x 1.6 x 6.5 x 23.3% 18.5%

Searcher
MOIC Return IRR

Entry Multiple Entry

65150.1 x 4.5 x 5.0 x 5.5 x 6.0 x 6.5 x 1,121,662.5% 4.5 x 5.0 x
Exit Multiple

Exit Multiple
4.5 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 4.5 x 861,166.1% 861,166.1%
5.0 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 5.0 x 861,166.1% 861,166.1%
5.5 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 5.5 x 861,166.1% 861,166.1%
6.0 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 6.0 x 861,166.1% 861,166.1%
6.5 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 70772.1 x 6.5 x 861,166.1% 861,166.1%

Prev. Owner + Incentives

MOIC Return IRR

Entry Multiple Entry

-- 4.0 x 4.5 x 5.0 x 5.5 x 6.0 x -- 4.4 x 4.9 x
Exit Multiple

Exit Multiple
4.0 x 3.0 x 4.3 x 4.3 x 3.0 x 1.9 x 4.9 x 20.0% 27.5%
4.5 x 3.0 x 4.3 x 4.3 x 3.0 x 1.9 x 5.4 x 20.0% 27.5%
5.0 x 3.3 x 4.7 x 4.7 x 3.3 x 2.1 x 5.9 x 22.0% 29.6%
5.5 x 3.9 x 5.6 x 5.6 x 3.9 x 2.4 x 6.4 x 25.5% 33.4%
6.0 x 4.8 x 7.0 x 7.0 x 4.8 x 3.0 x 6.9 x 30.0% 38.2%

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 2025P 2026P 2027P 2028P
$12,962.1 $13,934.3 $14,979.4 $16,102.8
7.5% 7.5% 7.5% 7.5%

$2,722.0 $2,926.2 $3,145.7 $3,381.6

21.0% 21.0% 21.0% 21.0%

$505.7 $543.6 $584.4 $628.2

3.9% 3.9% 3.9% 3.9%
7.5% 7.5% 7.5% 7.5%

$163.3 $198.6 $235.4 $271.2

1.3% 1.4% 1.6% 1.7%
26.2% 21.6% 18.6% 15.2%

($29.6) ($39.3) ($49.8) ($61.0)

4,238.4 4,292.5 4,328.7 4,349.5
$4,268.0 $4,331.8 $4,378.5 $4,410.6

($36.9) ($39.6) ($42.6) ($45.8)

129.6 139.3 149.8 161.0

8.4 x 7.9 x 7.4 x 6.9 x

2.8 3.4 4.3 5.5

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 Equity Value to Sellers & Roll-over Proceeds
Total Enterprise Value $5,029.2
--
--
Equity Value to Sellers $5,029.2

Current Pro Forma

100% 0.00%
0% --
100% --

Cash Rolled Total

$5,029.2 -- $5,029.2
-- -- --
$5,029.2 -- $5,029.2

Other Financing Assumptions

Revolver Facility --
Unused Revolver Fee --

$100.0
Circuit Breaker (1=Avg Interest, 0=Beg Int.) 1
Financing Fee Amortization (years) 6
Interest Rate on Cash --

Pro Forma Ownership

$ %
-- --
Previous Partner -- --
1,254.2 100%

$1,254.2 100%

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 2025P 2026P 2027P 2028P
$12,962 $13,934 $14,979 $16,103
$10,240 $11,008 $11,834 $12,721
$2,722 $2,926 $3,146 $3,382
$2,268 $2,438 $2,621 $2,818
$454 $488 $524 $564
-- -- -- --
$454 $488 $524 $564
$107 $130 $154 $178
$183 $159 $134 $115
-- -- -- --
$163 $199 $235 $271

$183 $159 $134 $115

$107 $130 $154 $178
$52 $56 $60 $65

$506 $544 $584 $628

7.5% 7.5% 7.5% 7.5%

21.0% 21.0% 21.0% 21.0%
17.5% 17.5% 17.5% 17.5%
39.6% 39.6% 39.6% 39.6%

2025P 2026P 2027P 2028P

$ 337.2 $ 362.5 $ 389.7 $ 419.0
$ 801.4 $ 861.5 $ 926.1 $ 995.5
$ 7.3 $ 7.8 $ 8.4 $ 9.0
$ 58.7 $ 63.1 $ 67.8 $ 72.9
$1,204.6 $1,294.9 $1,392.1 $1,496.5

$104.7 $112.6 $121.0 $130.1

$468.7 $503.8 $541.6 $582.2
$102.9 $110.7 $119.0 $127.9
$676.3 $727.1 $781.6 $840.2

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 $12,962.1 $13,934.3 $14,979.4 $16,102.8

9.3% 9.3% 9.3% 9.3%

5.2% 5.2% 5.2% 5.2%

1% 1% 1.0% 1%
0.4% 0.4% 0.4% 0.4%

674951818.xlsx - Mini Model Page 13 of 06/25/2023 at 01:05:43

 2025P 2026P 2027P 2028P
$163.3 $198.6 $235.4 $271.2
52.0 55.9 60.1 64.6
-- -- -- --
(84.0) (90.3) (97.1) (104.4)
47.2 50.7 54.5 58.6
$178.4 $214.8 $252.9 $290.0

($129.6) ($139.3) ($149.8) ($161.0)

($129.6) ($139.3) ($149.8) ($161.0)

$479.3 $461.6 $443.7 $428.3

(407.5) (407.5) (407.5) (407.5)
-- -- -- --
(129.6) (139.3) (149.8) (161.0)
($57.8) ($85.2) ($113.6) ($140.2)

($20.6) ($29.6) ($39.3) ($49.8)

(9.0) (9.7) (10.5) (11.2)
($29.6) ($39.3) ($49.8) ($61.0)

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 2025P 2026P 2027P 2028P

$906.5 $1,385.9 $1,847.5 $2,291.2

(20.6) (29.6) (39.3) (49.8)
(358.7) (332.0) (304.4) (278.5)
(100.0) (100.0) (100.0) (100.0)
479.3 461.6 443.7 428.3
$1,385.9 $1,847.5 $2,291.2 $2,719.5
-- -- -- --
-- -- -- --

$3,260.0 $2,852.5 $2,445.0 $2,037.5

(407.5) (407.5) (407.5) (407.5)
-- -- -- --
$2,852.5 $2,445.0 $2,037.5 $1,630.0

-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --

$1,385.9 $1,847.5 $2,291.2 $2,719.5

2,852.5 2,445.0 2,037.5 1,630.0
-- -- -- --
$4,238.4 $4,292.5 $4,328.7 $4,349.5

2025P 2026P 2027P 2028P

50 75 100 125

5.50% 5.75% 6.00% 6.25%

6.00% 6.00% 6.00% 6.25%
10.00% 10.00% 10.00% 10.00%
8.00% 8.00% 8.00% 8.00%

$63.0 $93.0 $124.2 $156.6

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 183.4 158.9 134.5 114.6
-- -- -- --
117.0 126.4 136.5 147.4

-- -- -- --
-- -- -- --
$183.4 $158.9 $134.5 $114.6
-- -- -- --
$183.4 $158.9 $134.5 $114.6
$183.4 $158.9 $134.5 $114.6

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 2025P 2026P 2027P 2028P
$505.7 $543.6 $584.4 $628.2
5.4 x 5.4 x 5.4 x 5.4 x
$2,745.7 $2,951.7 $3,173.0 $3,411.0
(4,238.4) (4,292.5) (4,328.7) (4,349.5)
(29.6) (39.3) (49.8) (61.0)
(129.6) (139.3) (149.8) (161.0)
(117.0) (126.4) (136.5) (147.4)
($1,768.9) ($1,645.9) ($1,491.8) ($1,308.0)
-- -- -- --
-- -- -- --
-- -- -- --
$0.00 $0.00 $0.00 $0.00

-- -- -- --
-- -- -- --
$117.0 -- -- --
$117.0 $126.4 -- --
$117.0 $126.4 $136.5 --

-- -- -- --
-- -- -- --
-- -- -- --
$129.6 -- -- --
$129.6 $139.3 -- --
$129.6 $139.3 $149.8 --

-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --

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ing 2004 Exit
IRR Return

Entry Multiple
5.5 x 6.0 x 6.5 x
(12.7%) (12.7%) (12.7%)
(1.3%) (3.2%) (4.7%)
5.7% 3.4% 1.5%
10.8% 8.2% 6.2%
14.9% 12.1% 9.9%

IRR Return

Entry Multiple
5.5 x 6.0 x 6.5 x
861,166.1% 861,166.1% 861,166.1%
861,166.1% 861,166.1% 861,166.1%
861,166.1% 861,166.1% 861,166.1%
861,166.1% 861,166.1% 861,166.1%
861,166.1% 861,166.1% 861,166.1%

IRR Return

Entry Multiple
5.4 x 5.9 x 6.4 x
27.5% 20.0% 11.1%
27.5% 20.0% 11.1%
29.6% 22.0% 12.9%
33.4% 25.5% 16.1%
38.2% 30.0% 20.2%

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 Raybend Questions
Prepaid tarrifs??
 Bonus exit valuation and return schedule
Earnout interest schedule
debt schedule
cash flow statement
Earnout Criteria 1 balance sheet items and capex
income statement
sources and uses
Earnout Criteria 2 assumptions and inputs
summary projected financials