Page 1 of 1 MSc Financial Management Venture Capital & Private Equity – A1 – Individual Assignment...

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MSc Financial Management
Venture Capital & Private Equity – A1 – Individual Assignment
Assignment Instructions:
Assignment Reference (subject title) VCPE-StudentNumber-Mar22-A1
Due Date 25 May 2022, 23:59 UK time
Word Count (if applicable) 2,000 +/- 10%. (Tables included in word count,
excluding spreadsheets supporting financials.)
Weighting 40%
File Format MS Office or PDF
Submission Details Instructions provided on Blackboard
Assignment Questions:

CASE STUDY: Troo

You are to assume that you are a PE House investment manager, and you wish to buy Troo, as it fits
into your portfolio of investments. You will put together a paper to present to your investment
committee which recommends that they purchase 100% of the equity from the cu
ent
shareholders, both individuals and the VC house.

This paper must comprise the following elements:
• Investment Hypothesis, with appropriate risk analysis/mitigation. (25%)
• Market review of the sector, and investment within it. (15%)
• Enterprise Value: (25%)
Provide a cu
ent Enterprise Value (EV) analysis, with reasons for the means of valuation
chosen. (This is a key issue for the investment committee).
There must be more than one means of valuation.
• Exit and Return: (20%)
Estimate the EV at the point of exit, and hence the equity value of your investment at exit.
Then calculate the money multiple return and IRR on the investment.
• Exit Options: (15%)
Provide the investment committee with a review of possible exit
options, and consider which might be most advantageous for the Investment House.

Notes:
It is important to provide external validation where appropriate.
For example, the valuation multiples chosen will need to conform with industry norms, both at
investment and exit.
Any market data needs to be referenced to independent analysis via a recognized trade body, or
information provider.
For exit options, you might wish to consider who would wish to buy the business, and why.

End of Assignment

Troo Accounts Pack January 22.xls
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
INCOME
Energy Introductions 281,101 348,427 147, XXXXXXXXXX,723.77
Other income 0 0 2,000 0
281,101 348,427 149,404 317,724
COST OF SALES
Commission 13,697 29,562 18,142 12,554
Third Party Costs 0 7, XXXXXXXXXX,815
Credit Checking/Data etc. 4,513 4, XXXXXXXXXX,839
Staffing 121,831 112,328 111,984 115,563
Marketing 2,326 2, XXXXXXXXXX,354
Provision XXXXXXXXXX
142,367 155,712 131,050 165,125
GROSS PROFIT/ (LOSS) 138,734 192,715 18,353 152,598
Admin Salaries 5,866 5,866 5,866 5,866
Recruitment fees XXXXXXXXXX,500
Rent 7,400 7,400 7,400 7,400
Gas and electric XXXXXXXXXX,078 1,775
Travel and Entertainment 1,569 1, XXXXXXXXXX,193
IT costs 11,887 17,434 12,951 17,233
Telephone 2, XXXXXXXXXX,922 1,716
Legal and Professional 2,440 3,902 2,322 2,302
Insurance XXXXXXXXXX
WEB Development XXXXXXXXXX
Repairs and renewals 1, XXXXXXXXXX
Bank Charges XXXXXXXXXX
General Expenses 1,203 2,624 3,402 3,496
35,374 41,219 36,509 46,328
NET PROFIT / (LOSS) before tax 103,360 151,496 (18, XXXXXXXXXX,270
Exceptional Costs XXXXXXXXXX
Interest 842 1,183 1,012 979
Corporation Tax XXXXXXXXXX
NET PROFIT after tax 102,518 150,313 (19, XXXXXXXXXX,292
MONTHLY PROFIT & LOSS
Actual Forecast Variance Actual Forecast Variance
INCOME
Energy Introductions 317,724 225,600 92,124 1,094,655 801,600 293,055
Other income XXXXXXXXXX,000 0 2,000
317,724 225,600 92,124 1,096,655 801,600 295,055
COST OF SALES
Commission 12,554 12, XXXXXXXXXX,954 45,611 (28,343)
Third Party Costs 31,815 (31,815) 39,345 (39,345) Costs associated with refe
als revenue stream
Credit Checking/Data etc. 3,839 1,750 (2,089) 13,225 7,000 (6,225)
Staffing 115,563 121,663 6,099 461,706 486,651 24,945
Marketing 1,354 6,750 5,396 6,023 25,000 18,977
Provision XXXXXXXXXX
165,125 142,999 (22, XXXXXXXXXX,254 564,262 (29,992)
GROSS PROFIT/ (LOSS) 152,598 82,601 69,998 502,401 237,338 265,062
Admin Salaries 5,866 5, XXXXXXXXXX,465 20,712 (2,754)
Recruitment fees 3, XXXXXXXXXX,500) 3, XXXXXXXXXX,500) Costs associated with team expansion
Rent 7,400 7, XXXXXXXXXX,601 29,660 59
Gas and electric 1,775 1, XXXXXXXXXX,692 4, XXXXXXXXXX)
Travel and Entertainment 2,193 1,000 (1,193) 5,636 4,000 (1,636)
IT costs 17,233 6,000 (11,233) 59,505 24,000 (35,505) Investment into enhanced IT systems
Telephone 1,716 3,000 1,284 7,931 12,000 4,069
Legal and Professional 2,302 2, XXXXXXXXXX,966 8,000 (2,966)
Insurance XXXXXXXXXX,524 2,000 476
WEB Development XXXXXXXXXX
Repairs and renewals XXXXXXXXXX, XXXXXXXXXX,026)
Bank Charges XXXXXXXXXX160)
General Expenses 3,496 1,000 (2,496) 10,725 4,000 (6,725)
46,328 27,343 (18, XXXXXXXXXX,430 109,072 (50,359)
NET PROFIT / (LOSS) before tax 106,270 55,258 51,013 342,970 128,266 214,704
Depreciation XXXXXXXXXX,504 2,504
Interest 979 3,038 2,059 4,015 12,398 8,383
Corporation Tax XXXXXXXXXX
NET PROFIT after tax 105,292 51,594 53,698 338,955 113,365 225,591
CURRENT MONTH YTD
VARIANCE TO FORECAST
Sales in the month and financial year have
outperformed forecast, with initiatives such as third
party refe
als and investment in staff driving
evenue. Further growth is expected as we expand
the sales team.
Strong EBITDA performamce driven by increased
evenue
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
Office And IT Equipment 37,568 37,568 37,568 39,893
Trade Debtors 305,639 315,000 143,348 18,840
Other Debtors 0 0 1,469 1,435
Accrued Revenue 1,549,539 1,622,741 1,632,210 1,871,661
Prepayments 66,671 106,862 100,737 109,774
VAT XXXXXXXXXX
Bank and cash 126,348 215,165 182,491 180,946
Trade Creditors 88,281 119,745 39,108 40,662
Accruals 109,255 111,500 110,986 142,603
PAYE 208,779 46,740 46,665 41,468
Other Creditors 4,587 4,171 4,030 4,107
VAT 147,857 149,819 66,816 74,209
CT Liability (66, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,940)
Directors' Loan account 28,208 28,208 28,208 28,208
Loans 658,410 846,451 830,475 814,465
Net Assets 907,329 1,057,643 1,038,474 1,143,766
Share Capital 962,085 962,085 962,085 962,085
Reserves (440, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,851)
Accum in cu
ent year 386,095 536,409 517,240 622,532
Total Shareholder funds 907,329 1,057,643 1,038,474 1,143,766
Difference - - - - - - - - - - - -
BALANCE SHEET
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
Opening Balance 46, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,261
CASH IN
Receivables 278, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,435
Government Grants 2,000
Loans/Investments
278, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,435
CASH OUT
Salaries & Associated Costs 136, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,472
Suppliers 43, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,890
Loan Repayment 19, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,818
VAT 105,852
198, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,180
NET CASH MOVEMENT 80, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,745-
Closing Balance 126, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,517
CASH FLOW STATEMENT

Company Registration No XXXXXXXXXXEngland and Wales)
TROO LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
TROO LTD
COMPANY INFORMATION
Directors Mr Andrew Richardson
Rachel Richardson
Mr Malcolm Smith
Mr Steven Goldsmith (Appointed 20 November 2020)
Secretary Mr Andrew Richardson
Company number XXXXXXXXXX
Registered office 1 Azure Court
Doxford International Business Park
Sunderland
SR3 3BE
Accountants Mu
ay and Lamb
12 Bessemer Court
Hownsgill Industrial Park

vcpe-a1-individual-assignment-brief-5e4spumw.pdf oct-21-to-jan-22-ky4vimht.pdf year-to-sep-20-tkszfe3y.pdf year-to-sep-21-upzimgh4.pdf

Rochak · Accepted Answer

Profit & Loss
	Particulars	Oct-20	Nov-20	Dec-20	Jan-21	Feb-21	Mar-21	Apr-21	May-21	Jun-21	Jul-21	Aug-21	Sep-21	Oct-21	Nov-21	Dec-21	Jan-22	Feb-22	Mar-22	Apr-22	May-22	Jun-22	Jul-22	Aug-22	Sep-22
	INCOME
	Energy introductions	101,873	79,435	89,744	29,080	63,455	146,791	177,005	165,609	223,200	205,980	259,770	207,786	281,101	348,427	147,404	317,724	714,878	1,544,138	1,775,758	1,811,273	2,264,092	2,082,964	2,624,535	3,280,669
	Growth Rate (Assumed)		-22%	13%	-68%	118%	131%	21%	-6%	35%	-8%	26%	-20%	35%	24%	-58%	116%	125%	116%	15%	2%	25%	-8%	26%	25%
	Other Income	4,550	16,581	38,737	50,178	49,755	30,828	16,000	3,000	1,993	650	1,214	- 0	- 0	- 0	2,000	- 0	650	650	650	650	650	650	650	650
			264%	134%	30%	-1%	-38%	-48%	-81%	-34%	-67%	87%
	Total Income	106,423	96,016	128,481	79,258	113,210	177,619	193,005	168,609	225,193	206,630	260,984	207,786	281,101	348,427	149,404	317,724	715,528	1,544,788	1,776,408	1,811,923	2,264,742	2,083,614	2,625,185	3,281,319
	COST OF SALES
	Commission	- 0	3,082	2,139	2,021	2,889	16,445	21,241	10,000	6,234	6,996	11,693	10,502	13,697	29,562	18,143	12,554	50,041	108,090	124,303	126,789	158,486	145,808	183,717	229,647
	Growth Rate (Assumed)		4%	2%	7%	5%	11%	12%	6%	3%	3%	5%	5%	5%	8%	12%	4%	7%	7%	7%	7%	7%	7%	7%	7%
	Third Party Costs	- 0	- 0	- 0	- 0	- 0	22,397	20,086	632	1,200	3,000	31,400	7,996	- 0	7,500	30	31,816	71,488	154,414	177,576	181,127	226,409	208,296	262,454	328,067
	Growth Rate (Assumed)						15%	11%	0%	1%	1%	12%	4%	0%	2%	0%	10%	10%	10%	10%	10%	10%	10%	10%	10%
	Credit Checking/Data etc.	1,658	1,000	1,058	458	3,628	2,083	1,608	5,166	2,819	685	684	1,142	4,513	4,182	691	3,840	7,149	15,441	17,758	18,113	22,641	20,830	26,245	32,807
	Growth Rate (Assumed)	2%	1%	1%	2%	6%	1%	1%	3%	1%	0%	0%	1%	2%	1%	0%	1%	1%	1%	1%	1%	1%	1%	1%	1%
	Staffing 	72,801	67,444	67,430	61,081	76,476	88,625	95,814	101,308	122,819	119,612	119,720	119,557	121,831	112,328	111,984	115,563	328,844	710,303	816,849	833,186	1,041,482	958,164	1,207,286	1,509,108
	Growth Rate (Assumed)	71%	85%	75%	210%	121%	60%	54%	61%	55%	58%	46%	58%	43%	32%	76%	36%	46%	46%	46%	46%	46%	46%	46%	46%
	Marketing	11,373	4,255	2,652	11,362	6,164	5,806	3,607	4,839	7,941	2,343	1,721	834	2,326	2,140	203	1,354	7,149	15,441	17,758	18,113	22,641	20,830	26,245	32,807
	Growth Rate (Assumed)	11%	5%	3%	39%	10%	4%	2%	3%	4%	1%	1%	0%	1%	1%	0%	0%	1%	1%	1%	1%	1%	1%	1%	1%
	Provisions	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0
	Total Cost of Sales	85,833	75,782	73,280	74,925	89,158	135,357	142,357	121,946	141,014	132,637	165,219	140,032	142,368	155,712	131,051	165,126	464,672	1,003,690	1,154,243	1,177,328	1,471,660	1,353,927	1,705,948	2,132,435
	GROSS PROFIT/(LOSS)	20,590	20,234	55,201	4,333	24,052	42,262	50,648	46,663	84,179	73,993	95,765	67,754	138,733	192,715	18,352	152,597	250,857	541,097	622,165	634,595	793,081	729,687	919,237	1,148,883
	Admin Salaries	5,868	4,464	4,464	3,921	4,759	4,934	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866	5,866		Constant over the years. Company is not planning to increase manpower
	Recruitment fees	3,500	- 0	- 0	- 0	- 0	2,250	1,500	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	3,500	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0		Assumed no hiring
	Rent	6,464	7,397	7,397	7,397	7,397	7,532	7,335	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400	7,400		Assumed constant as rent agreements last over a year
	Gas and electric	1,500	1,572	249	315	360	722	845	812	792	779	854	1,922	884	955	1,078	1,775	963	963	963	963	963	963	963	963
	Travel and Entertainment	620	431	438	573	449	1,157	1,225	824	1,192	- 0	-6	3,635	1,569	1,843	32	2,193	1,011	1,035	1,073	1,113	1,147	1,190	1,192	1,190
	IT Costs	3,075	3,652	3,297	3,130	3,345	4,159	4,884	5,136	5,876	6,542	15,077	12,995	11,887	17,434	12,951	17,233	8,167	8,167	8,167	8,167	8,167	8,167	8,167	8,

Page 1 of 1 MSc Financial Management Venture Capital & Private Equity – A1 – Individual Assignment Assignment Instructions: Assignment Reference (subject title) VCPE-StudentNumber-Mar22-A1 Due Date 25...

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