Software Industry Private Placement Financial Model

Description
Electronic Arts Inc. Financial Model is a financial model of a North American Interactive Home Entertainment industry giant private placement by a consortium of investors including the Public Investment Fund, Silver Lake Group LLC and Affinity Partners Inc. The Company has been experiencing stagnant growth for three years prior to the take private transaction annoucnement, its operating margins have remained subdued relative to industry average, the Company has been returning cash to shareholders rather than reinvesting in growth opportunities and EA stock prices have underperformed both NASDAQ and SPX over the last five years. The deal is structured as an All-cash take-private (reverse triangular merger) financed with sponsor’s equity and $20 billion debt. The model is ideal for investment banking, equity research, software, technology and private equity finance professionals, valuation and transaction experts. The model includes the following features:

• Comprehensive 11‑year, annual three‑statement financial model of Electronic Arts Inc. under (i) the existing management team and (ii) private‑equity leadership, including integrated schedules for revenue, costs, depreciation, working capital, taxes, debt, interest, shareholders’ equity, and covenants and credit statistics, as well as fully linked income statement, cash flow statement, and balance sheet.
• Detailed IRR schedule and cash‑flow waterfall analysis, including MoIC, cash‑on‑cash returns and value added at both the operating company (“OPCO”) and holding company (“HOLDCO”) levels. Analysis incorporates assumptions with respect to sponsor investments in Q2 2026, OPCO dividend flows, debt balances and repayment for optimal IRR schedule, PIK and cash‑interest mechanics, and annual exit scenarios from 2027 to 2037.
• Complete leveraged buyout model with sources and uses of funds at OPCO and HOLDCO, reflecting a stock acquisition financed with long‑term debt, sponsor equity, and a revolver. Model includes transaction fees, purchase‑price allocation, the choice to refinance or assume the existing debt as of September 30, 2025 (2026 Q2) and goodwill created based on public disclosures and deal terms.
• Fully recapitalized pro forma balance sheet for the post‑transaction private company.
• Historical financial statements and credit statistics for Electronic Arts from 2020 Q3 through 2026 Q2.
• Status Quo valuation including discounted cash flows (“DCF”) and comparable‑company analyses under the existing management team, and a fairness‑opinion evaluation of the offer price to EA shareholders.
• Implied equity value per share (fair value per share) ranges for fairness‑opinion purposes based on its sensitivity to terminal growth and 2037 reinvestment assumptions (Capex/Sales), with interpolation of this ratio across the forecast period.
• Implied equity value per share ranges for fairness‑opinion purposes derived from comparable‑company valuation multiples, including EV/FY1 EBITDA, EV/FY2 EBITDA, EV/FY1 Sales, and EV/FY2 Sales.
• Quantification of risk measures for purposes of valuation including beta (levered and unlevered), equity risk premium, country risk premium, cost of equity and cost of capital (WACC) throughout the forecast period given the deleveraging of capital structure.
• Valuation of the PE-led revamped company and calculation of implied equity value per share under Base, Best, and Worst‑Case scenarios using intrinsic‑value methodologies, including assessment of the value of control. Base‑Case reinvestment assumptions and Capex/Sales ratios aligned to arrive at the $210 per share offer price.
• Sensitivity analysis of intrinsic value with respect to terminal‑year growth assumptions.
• Scenario analysis for Base, Best, and Worst‑Case revenue drivers—including Full game downloads - Units Sold, Full game Packaged goods - Units Sold, Live Services Monthly Active User (MAU), and Average Revenue Per User (ARPU) —and resulting three‑statement outputs, valuations, and exit IRRs for OPCO and HOLDCO.
• Sensitivity of IRR, MoIC, and fair value of shares under PE‑led management to OPCO leverage levels and debt balance, reflecting allocation of the $20 billion total debt financing between HOLDCO and OPCO.
• Sensitivity of exit‑year IRR and MoIC to exit EBITDA multiples and related valuation outcomes.
• Automated dashboard for Base, Best and Worst Case scenarios summarizing Status Quo valuation, revamped company valuation, market data, transaction terms, and IRR profiles across scenarios.
• Calculation of Jensen’s Alpha, risk adjusted, market adjusted measure of returns, for all selected comparable companies.
• Inclusion of all model tabs: Cover, Summary, Assumptions, Sources & Uses, Scenarios, Historical, Model, Status Quo Valuation, Live Beta, Jensen’s Alpha, Forward Comps, and Notes.
• Comprehensive report describing transaction structure, valuation methodologies, fairness‑opinion logic, anatomy of a leveraged buyout (“LBO”) and criterias which make a successful private placement target, leverage allocation between OPCO and HOLDCO, return drivers and sensitivities, and investment considerations as of November 14, 2026.
• Print‑ready and predefined print ranges is included within the Excel model. A print ready PDF of the model is included with the package.