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Marymount College Financial Model Financial Ratios & KPIs Case study Sheet
Case Study
Company X (“Project Newton” or “Target”) is active in the K-12 education industry in Riyadh, Saudi Arabia. Its key shareholders have decided to sell 60% of the company. The team needs you to prepare a financial analysis to assess the investment and decide whether to proceed with the deal and if so at what price.
Please include all the assumptions that drive your projections in the model. As part of the expansion, the Target is considering a new project (details at the assumption tab) which is expected to be operational in 2018. Furthermore, the investment will be placed in a fund through a Special Purpose Vehicle (“SPV”). the Fund will charge annual management fees of 2% and 20% carry subject to a preferred return of 8%.
Key Requirements
1. Develop a full financial model (four years projections 2017 – 2020), make the necessary assumptions
2. Include any financial ratios and KPIs you feel are relevant or important, and why they are important.
