Investment Banking World 226

Use Planet Fitness' latest financial model that Advent updated based on their specifications and assess Advent’s “ability to pay” to reach 25% IRR after 5 years if there are net revenue synergies between Planet Fitness and a portfolio company that Advent already holds. Assume exit multiple is 18x and estimated revenue synergies are as follows: $10 million per quarter (Q1-Q4 2026); $50 million per quarter (Q1-Q4 2027 and beyond). Assume no incremental costs associated with the net revenue synergies. Reply to me with a message outlining the implied premium paid to reach 25% IRR, assuming the revenue synergies above.

Planet Fitness is looking to divest its entire 281 stores, which it owns as of September 30, 2025, to a franchise owner. Round all results to two decimal places and present it in $mm. Using the LBO model, perform a DCF analysis for the company as per the base case scenario for the projected cash flows for the 281 stores, and assume the following: 1) Assume that the average revenue per store increases by 5% YoY for every quarter from Q4 2025 through the end of 2030 2) Assume EBITDA margin for the business remains at 39% every quarter from Q4 2025 through the end of 2030 2) Assume that the effective tax rate is 20% 3) Assume that the depreciation rate is 5% of the revenue 4) Assume that maintenance capex is 2% of sales and there is no growth capex 5) Assume a discount rate of 12% and terminal growth rate of 2% 6) Do the enterprise valuation as of December 31, 2025 Print here the FCFF for 2026 to 2030. Also give the Enterprise Value of the corporate-owned store business

Calculate the sponsor equity value and IRR for FY2030, then report the sponsor equity value in US dollars as a reply. Round $ to the nearest million and report the IRR % to one decimal place. 1. Reference the "Copy of LBO" tab in the LBO model for interim calculations. 2. Develop one scenario with the following specifications: -- Increase the Cash to $600 from $500 and the Minimum Cash to $100 from $50 -- Decrease the Exit Multiple from 18.0x to 15.0x -- Increase the “Secured term loan - USD tranche” leverage from 6.0x to 7.0x LTM EBITDA -- Remove the annual mandatory amortization of the "Secured term loan – USD tranche" -- Set the interest income rate assumption to 7.5% for each forecast year from FY2026 through FY2030

Conduct a 5-year IRR sensitivity analysis using Planet Fitness' latest financial model that Advent updated based on their specifications (v7). Assess the IRR impact to Advent if the terms of the debt raised changed while keeping 10% offer price premium and 18x exit multiple. Calculate the 5-year IRR when Debt Raised at Close at 6.5x, 7.0x EBITDA and interest rate at 6.5% and 7%. You can use a "Copy of LBO" tab. Round all calculated numbers to one decimal place. Reply back to me here with the information I've asked for.

Use the LBO analysis, update it to assume that Planet Fitness stock option tranches outstanding. I want to see the Year 5 IRR, flexing premium paid and exit multiple. # Assumptions -All options are vested or will vest in the event of a transaction -3 tranches of stock options outstanding: *5.0 million shares at a strike of $105.00/share *4.0 million shares at a strike of $110.00/share *5.0 million shares at a strike of $116.00/share # Output In the LBO analysis file create a new sensitivity table, with the Entry Premium % of 5% and 15%. Also show the Exit Multiple of 16x, 18x and 20x. Round final monetary values to nearest million. Round all other values to 1 decimal point.

Use Planet Fitness' latest financial model, in the"Copy of LBO" tab, and sensitize $ operating expenditure each year by +/- 5% against the base case for each year from 2026 through 2030; calculate the resultant change in FY30 IRR relative to the base case. (For illustration, if opex in FY26 was $1,000, the downside (+5% opex) case would be $1,050 opex and the upside case (- 5% opex) would be $950 opex.) Create a new Sheet and make a table with: - Rows: "Upside", "Base", "Downside" scenarios - Columns: "Scenario"; "IRR"; "Accretion/Dilution" Where "IRR" is the IRR for the given scenario and "Accretion/Dilution" is the difference in the scenario IRR against the base case in absolute % terms. Format all percentages to 2% decimal places

Using the LBO model, I want you to tell me updated values for: (1) Implied Net Debt, (2) Sponsor Equity Value and (3) IRR for Year 5. # Assumptions -Increase the interest rate of the secured term loan from 7.5% to 7.75%, and assume the secured term loan is now non-amortizing -Increase entry leverage from 6.0x LTM EBITDA to 7.25x LTM EBITDA -Hold revenue growth constant at 11.0% from FY27E through FY30E Given the revenue adjustment, throughout the forecast period, assume: - Quantum of Operating Expenses remains unchanged - Capex in this scenario scales faster than revenue and as a % of revenue increases by 100bps above the base case - Assume no $ increase to D&A For the final numbers: Percentages rounded to 1 decimal point. Monetary values rounded to the nearest whole million USD.

Calculate the sponsor equity value and IRR for FY2030, then report the sponsor equity value in US dollars, rounded to the nearest million, and report the IRR as a percentage rounded to one decimal place. Use the LBO model. Reply straight back to me please, with everything I requested. Use these specs: - Increase the “Secured term loan - USD tranche” leverage from 6.0x to 7.5x LTM EBITDA and decrease the yield from 7.50% to 6.50%. - Hold revenue growth constant at 12.0% per year from FY2026 to FY2030. - Decrease the % Premium to 5.0% from 10.0%.

Conduct a 5-year IRR sensitivity analysis using Planet Fitness' latest financial model that Advent updated based on their specifications (v7). Assess the impact if Planet Fitness reduces National advertising fund expense to 10% YoY change in Q1 to Q4 2026. Using the "Copy of LBO" tab calculate the 5-year IRR when offer prices are $100, $110 and exit multiples are 16x, 17x. Round all calculated results to one decimal place. Create a sensitivity table, and make a new Spreadsheet, with these values.

Update the LBO analysis tab "Copy of LBO". It needs to include a single potential add on acquisition in FY2027E. Assess the impacts on the 5-year LBO analysis. Use SOFR actual data. Add to that tab, the total debt, total enterprise value, and sponsor IRR. Round $ to millions and others to 1 decimal point. General assumptions: -Target EBITDA at time of acquisition is $41mm -Assume target EBITDA grows at the same CAGR as Planet Fitness standalone EBITDA forecast from 27-30 -Acquisition EBITDA multiple of 10.0x -No synergies -Acquisition funded first by all available cash on hand (less minimum cash), then by a revolver. Revolver assumptions: *The revolver was left undrawn at purchase *Priced at SOFR + 400 (for the purpose of this analysis, pricing will be fixed throughout the forecast at the 30-day Average SOFR as of 11/21 in attached file titled "SOFR (Actual).xlsx") *Maximum revolver capacity of $1,000mm *Unused revolver commitment fee of 0.25% *Revolver paydown is prioritized before cash sweep to any other debt

Update the LBO model to include an incentive payment structure of PLTF management post-transaction. Assess the impacts on the 5-year LBO analysis. Management is eligible for these payments each year of the forecast based on 3 levels of performance targets: - Minimum: Meets Currently modeled EBITDA projections - Midpoint: Exceeds EBITDA projections by 10% - Maximum: Exceeds EBITDA projections by 20% The Payout for each level: - Minimum: $2mm - Midpoint: $3mm - Maximum: $5mm Here are some assumptions: - For EBITDA outcomes that surpass one threshold but not the next, management will receive the pro-rata proportion of EBITDA in excess of the threshold, calculated linearly between the two thresholds - Create 2 new cases (in addition to the "base" case currently in the model) where revenue exceeds the base case forecast by 5% and 10% per year, respectively - For the 5% revenue outperformance case, assume capex in this scenario scales faster than revenue and as a % of revenue increases by 100bps above the base case - For the 10% revenue outperformance case, assume capex in this scenario scales faster than revenue and as a % of revenue increases by 100bps above the base case In the final results, round all % values to 1 decimal point. Write back to me with your findings here as a short message.

Planet Fitness is considering the acquisition of 100% stake in The Gym Group and taking it private in order to expand its presence within the UK. Using GYM H1 2025 and GYM annual 2024 docs, consider the following assumptions: 1) Assume the full year 2025 revenue equal to LTM revenue June 2025 2) Assume the full year 2025 Group Adjusted EBITDA less normalized rent equal to LTM Group Adjusted EBITDA less normalized rent June 2025. 3) Assume the annual revenue growth is 3% for all years going forward beginning January 1, 2026 4) Assume the annual margin expansion going forward beginning January 1, 2026 is 50 bps 5) Assume that GBP/USD exchange rate is equal to 1.31 as of December 31, 2025 and GBP will appreciate 2% every year beginning January 1, 2026 6) Assume that Depreciation and Amortization is 5% of the revenue and the existing debt at the end of June 30, 2025 is refinanced at a rate of 3.00% for an amortization term of 5 years based on equal payments. For interest expense computation, consider it based on the opening balance. 7) Assume that there is no other operating income or expenses and effective tax rate is 10%. 8) Assume there's no capex or change in NWC during the projection period. 9) Assume the 100% acquisition in The Gym Group is announced at 11x EV/ 2025 Group Adjusted EBITDA less normalized rent on December 31, 2025. 10) Assume the net debt as of June 30, 2025. 11) Assume that The Gym Group provides dividends to the parent on December 30 every year to a maximum of its Profit after tax. 12) Assume that the exit multiple at the end of December 31, 2030 is 12x EV / 2025 Group Adjusted EBITDA less normalized rent. 13) Assume that there is no interest income on cash during the projection period and no cash balance at the end of December 31, 2030. Return for me a message with the Equity Value for 100% stake purchase of The Gym Group. Also give me the 2026 to 2030 dividends, and the IRR for Planet Fitness (post FX conversion). In your answer, round the percentages and the millions to two decimal places.

Calculate operating cost before D&A as a percentage of sales ("operating cost margin") for each of GYM, Life Time, Planet Fitness, and Xponential fitness for each year from FY2021 to FY2024 before D&A, then calculate the average of those results. Print your answers as a reply to me here. Give them as percentages, rounded to two decimal places.

Using the LBO model, update the analysis to reflect a go-forward plan which emphasizes an increased investment on franchisee-owned stores. Output the implied Sponsor Equity Value and IRR for Year 5. Round percentages to 1 decimal point and round monetary values to the nearest whole million USD. Bear in mind: -Increase the "New stores opened" assumption for Franchisee-owned stores each quarter from 1QE 2026E through 4QE 2030E by 5.0% vs. the corresponding quarter in the base case -Adjust the "Same Store Sales" assumption for Franchisee-owned stores each quarter from 1QE 2026E through 4QE 2027E to 7.0%, and then from 1QE 2028E to 4QE 2030E, hold Same Store Sales assumption constant at 5.5% -Increase "Exit Multiple" assumption from 18.0x to 19.5x to account for the increased overall EBITDA margin of the business though franchise growth

Calculate the sponsor equity value and IRR for FY2030, then report the sponsor equity value in US dollars, rounded to the nearest million. Report the IRR to one decimal place. Reference the LBO model where needed. Note: the LBO model has an error. Mandatory Debt Repayments in the Levered Free Cash Flow build should be set to $0 to correct the error. Use the following specifications: - Decrease “Secured term loan - USD tranche” yield from 7.5% to 5.0%. - Increase annual mandatory amortization of the “Secured term loan – USD tranche” to 7.5% of the opening principal balance of $3,432mm. - Hold revenue growth constant at 13.0% per year from FY2026 to FY2030; model drivers should reflect the updated revenue growth (for avoidance of doubt, OpEx remains unchanged vs the base case in $ terms). - Only 10.0% of the cash available for total debt service in each year is allocated to the optional repayment of the secured term loan. Give me the answers here in the console.

Using the LBO analysis, conduct a Purchase Price Allocation to show the amount of pro-forma goodwill created from this transaction. Also show the allocable purchase premium. Round all monetary values to the nearest million. Write back the results as a message to me in here. # Assumptions - Balance sheet figures sourced from the "Balance Sheet" tab, using FY25E data (as of Q425) - Intangible Assets Write Up: Intangible asset allocation %: 10.0%. Useful life assumption: 15 years - PP&E Write Up: PP&E write up %: 10.0%. Useful life assumption: 8 years - Tax rate of 25%

Conduct a 5-year IRR sensitivity analysis using Planet Fitness' financial model. Model the impact if, starting Q1 2026, Planet Fitness opens 10 additional Franchisee-owned stores each quarter, compared to the same quarter in the prior year, and continues this trend each quarter until Q4 2030. 1. Using the "Copy of LBO" tab, calculate the 5-year IRR when share price premiums are 10%, 15% and exit multiples are 16x, 17x, 18x. 2. Round all calculated results to one decimal place. REQUEST: Put in a sensitivity table to a new Sheet with these values.

Output the year 5 Equity Value to Sponsors and IRR (with a 5 year exit). From the existing LBO model, update values to both a 20% equity rollover from existing shareholders and a 10% management option pool. Write the information straight here. Assumptions: -Existing shareholders have agreed to roll 20% of their exit proceeds into the deal as a source of funds (i.e., note that existing shareholders will have a 20% pro forma equity stake) -Impact of net option dilution calculation as follows: *Options only trigger if exit equity is greater than entry equity *If options trigger, gross proceeds to management is total exit equity multiplied by the percentage of management's option pool *Netted against management's cost to exercise, calculated as the value of entry equity multiplied by percentage of management's option pool Round monetary values to nearest whole number. Round all other values to 1 decimal point.

Use Planet Fitness' latest financial model, and conduct an ability to pay analysis around Advent's target IRR of 25%. Create a new xlsx sheet, then round all calculated values to two decimal places for: the implied premium paid when target IRRs are 20.0%, 22.5%, 25.0%. Exit multiples are 18x and 20x.