KUKO.
Deal memo · Prepare. Spar. Win.
Downside
16.3%
IRR · MOIC 2.1x
Investor proceeds $8.9M
Base
28.2%
IRR · MOIC 3.5x
Investor proceeds $14.4M
Upside
36.9%
IRR · MOIC 4.8x
Investor proceeds $20.1M
Sources & uses
| Enterprise Value | $15.5M |
| Fees (3.0% of EV) | $466K |
| Total uses | $16M |
| Senior debt @ 7.5% | $7M |
| Mezz @ 10.0% | $0K |
| Seller note @ 7.0% | $2.5M |
| Earn-out | $0K |
| Revolver drawn | $0K |
| Equity check | $6.5M |
| Investor equity (64%) | $4.2M |
| Seller rollover (36%) | $2.3M |
| Management (0%) | $0K |
| Entry leverage | 2.6x |
Scenario comparison
| Metric | Downside | Base | Upside |
|---|---|---|---|
| Investor IRR | 16.3% | 28.2% | 36.9% |
| Investor MOIC | 2.1x | 3.5x | 4.8x |
| Exit EBITDA | $3.5M | $4.7M | $6.1M |
| Exit TEV | $15.8M | $21.1M | $27.6M |
| Exit net debt | $2M | $-1.4M | $-3.8M |
| Debt paydown | 58% | 74% | 74% |
| Min DSCR | 1.45x | 1.83x | 1.95x |
Debt paydown — Base
| Year | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Senior (end) | $5.8M | $4.4M | $3M | $1.5M | $0K |
| Mezz (end) | $0K | $0K | $0K | $0K | $0K |
| Seller note | $2.5M | $2.5M | $2.5M | $2.5M | $2.5M |
| Revolver | $0K | $0K | $0K | $0K | $0K |
| Cash (end) | $547K | $1.2M | $1.9M | $2.7M | $3.9M |
| FCF | $1.8M | $1.9M | $2.2M | $2.4M | $2.6M |
| DSCR | 1.83x | 2.01x | 2.31x | 2.61x | 3.09x |
Operating assumptions — Base
| Driver | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue growth (drivers) | 3.0% | 3.0% | 4.0% | 4.0% | 4.0% |
| EBITDA margin | 18.4% | 18.5% | 19.0% | 19.0% | 19.5% |
- Entry multiple 4.2x on LTM EBITDA $3.7M
- Senior amort 10%/yr · cash sweep 50%
- D&A 3.0% · Capex 3.0% · NWC 12.0% · Tax 25.0%
Sparring / points to defend
No structural red flags in the base case. Stress-test whether you would still do the deal at downside (IRR 16.3%).
KUKO does not provide investment advice. Outputs are based on user inputs and are for informational purposes only. Model conventions (interest on beginning balances, no NOLs, seller note / mezz / earn-out bullets at exit) are simplifications — challenge each one.