financial-modeling

Provide entry and exit EBITDA multiples, LTM EBITDA, leverage levels, and hold period. The model computes sponsor equity, projects exit EBITDA, applies debt paydown, and returns IRR and MOIC with sensitivity tables on entry versus exit multiples.

Terminal value uses either the Gordon Growth Model (final year FCF grown at perpetuity rate divided by WACC minus growth) or an exit EBITDA multiple. Best practice is computing both and comparing implied multiples and growth rates for reasonableness.

Yes, all analytical logic works without MCP connections. If Nexus MCP tools or financial data connectors are unavailable, the skill prompts you to provide financials manually and proceeds with the same modeling methodology.

Models follow Wall Street conventions: blue font for hardcoded inputs, black for formulas, green for cross-sheet links, and red for external links. Number formats use parentheses for negatives, dashes for zeros, and 0.0x for multiples, implemented via openpyxl.

Dilution occurs when pro forma EPS falls below standalone EPS, often from new shares issued or intangible amortization. Breakeven synergies equal the net income shortfall divided by one minus the tax rate, showing the synergies needed for EPS neutrality.

Trading comps reflect current market sentiment without a control premium and suit ongoing valuation benchmarks. Precedent transactions include control premiums of 20-40% and better reflect actual M&A pricing, making them preferable for deal negotiations.