At 22.54 million, with every driver cited to a numbered assumption, the FI499 Unit 5 valuation model here splits stand-alone value from synergy and sets both against the price. Searches like "fi 499 unit 5 assignment example", "fi499 unit 5 sample" and "fi499 unit 5 example" land here.
What a finished FI499 Unit 5 valuation model looks like
A workbook summarized in four pages. The forecast table runs five years: revenue from 8.23 million to 9.81 million, EBITDA from 2.06 million to 3.00 million including savings, and free cash flow of 0.51, 1.83, 1.98, 2.06 and 2.11 million after tax and capital spending. Year one is thin because the 900,000 conversion budget lands there. Discounted at 10.5 percent, those flows are worth 6.09 million. A terminal value of 27.10 million at 2.5 percent growth adds 16.45 million in present terms, 73 percent of the total. The same model with the savings row set to zero gives 19.75 million, below the 21.0 million price. A last exhibit shows the buyer handing the seller 1.25 million, 45 percent of the synergy value it expects to create.
How a FI499 Unit 5 example is structured
The model is laid out so that its inputs and its arithmetic never share a cell. An inputs block at the top pulls every driver from the assumption set, each labeled with its row, A1 through A12, and nothing below it is typed by hand. The forecast follows year by year, then the free cash flow build line by line: EBITDA, tax on EBITDA less depreciation, then upkeep and conversion spending. Discounting comes next, with the factor for each year shown. The terminal value gets its own block, with the growth rate, the formula and its share of total value side by side. Two valuations then sit together, with and without savings, and the paper closes on the gap between the price and each of them, which frames the risk and sensitivity work to come.
Inputs pulled, never typed
Every driver in the calculation links to its assumption row, and a check cell confirms the model and the list still agree after any edit.
Free cash flow line by line
Tax is charged on EBITDA less 900,000 of depreciation, then spending is subtracted, so each year's 0.51 to 2.11 million can be rebuilt by hand.
Terminal value in the open
At 2.5 percent growth and a 10.5 percent rate, the value beyond year five supplies 73 percent of the total, and the paper reports that share plainly.
The business alone
Setting the savings row to zero leaves 19.75 million, 1.25 million short of the asking price, which shows the deal depends on what the buyer adds.
Who keeps the synergy
Of 2.79 million in expected synergy value, the price hands 45 percent to the seller, a split the recommendation will later have to defend.
Where marks go in FI499 Unit 5
Traceability carries the heaviest weight here. A model whose drivers are typed directly into formulas, with no link to the stated assumptions, cannot show that it honors them, and a grader who finds one mismatch will look for others. Terminal values that dominate the result without being reported as a share of it hide where the answer comes from. Discounting a flow that already deducts interest at a rate that also prices debt counts the cost of borrowing twice. Models reporting a single value with synergy folded in lose the distinction the decision needs. Arithmetic errors cost less than a missing link, since a visible chain lets a grader award method credit. Papers that state a value and stop, without comparing it to the price, leave the unit unfinished.
Get a FI499 Unit 5 example written to your instructions
Share the case file, the assumption set your section approved and the Unit 5 requirements, including any required method. Every driver in the model you receive links to your own assumption rows, stand-alone value is separated from synergy, and the gap to the price is stated. A workbook can come with it; a first sample is free, usually within 24-48h.
FI499 Unit 5 questions, answered
Why separate stand-alone value from synergy?
Because the seller created the first and the buyer creates the second. Paying up to stand-alone value is safe; every dollar above it is paid for savings the buyer has not yet delivered. The sample shows the price sits 1.25 million above stand-alone value, which turns the synergy estimate from a detail into one of the case's central risks.
Is 73 percent from the terminal value a problem?
Not by itself. Businesses with long lives and steady cash flows often carry most of their value beyond any five-year forecast. The problem arises when that share goes unreported, or when the growth rate behind it contradicts the assumption set. The sample reports the share beside the result and uses the 2.5 percent in A3, so a reader can judge it.
Should the model include a comparables cross-check?
If the case supplies transaction data, a brief one helps. The sample notes that its value equals about 10.7 times the rival's trailing EBITDA and places that against the deal range the case file gives. It stays a check, not a second method, because a capstone valuation is assessed on one traceable model rather than several loosely connected ones.