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Instructor capstone solution — Apex Fire & Security

Instructor version. Grade reasoning and live formulas before comparing outputs. Do not award an 80-point pass if a critical failure remains. A decline supported by the stated economics can receive full marks.

Independently calculated checkpoints

{
  "normalized": 800000,
  "sde": 980000,
  "peg": 420000.0,
  "estimated": 390000,
  "final": 340000,
  "settlement": -50000,
  "consideration": 3770000.0,
  "immediate": 3180000.0,
  "indemnity": 45000,
  "seller_receipts": 3675000.0,
  "interest": 272269.32156817906,
  "service": 444026.47592272004,
  "stress": [
    {
      "ebitda": 800000,
      "tax": 111932.66960795523,
      "cfads": 588067.3303920447,
      "dscr": 1.3243969949539542,
      "remaining": 144040.8544693247
    },
    {
      "ebitda": 620000,
      "tax": 66932.66960795523,
      "cfads": 453067.33039204474,
      "dscr": 1.020361070700879,
      "remaining": 9040.854469324695
    },
    {
      "ebitda": 440000,
      "tax": 21932.669607955235,
      "cfads": 318067.33039204474,
      "dscr": 0.716325146447804,
      "remaining": -125959.1455306753
    }
  ]
}

The calculations originate in curriculum.finance, independently of Excel formulas. The instructor workbook is a separate linked solution. Reconcile any difference using units, timing, tax convention, source perimeter and rounding; do not overwrite a failing formula with this number.

Solution method and assessment

Use fictional comps A EV2,520,000/EBITDA600,000; B 3,800,000/800,000; C 5,250,000/1,000,000; D 3,150,000/700,000. Customer revenue 960,000, contribution45%, avoidable overhead72,000. Recurring revenue2,880,000 at55% gross margin and project1,920,000 at35%.

NWC reference months are 360k,390k,410k,430k,450k,480k. Estimated accounts AR590k/inventory175k/prepaid30k/AP225k/accrual85k/deferred95k. Final closing accounts570k/165k/30k/230k/90k/105k. Target uses the same definition including full-face deferred revenue. Restore all missing NWC; do not treat price reduction as free cash.

Inspect the supporting schedules in order: source assumptions, operational or transaction drivers, cash implications, claims allocation, checks and recommendation. Require the learner to explain why an input change moves the answer. Review all five rubric dimensions separately. Undefined EV/equity basis, duplicated true-up or recovery, unsupported seller proceeds, ineligible SBA earnout or concealed cash-covenant failure is critical.

The full worked chapter supplies the narrative reasoning. The student packet withholds these completed results. Native Excel/LibreOffice recalculation remains a separate compatibility check from the available formula-engine tests.