Location: Newburgh, NY
The attached spreadsheet model pertains to Accu-Tile, a tile and granite retailer located in Newburgh, NY. Accu-Tile is currently listed for sale for $1,195,000. In this model, you will find a pro forma income statement and balance sheet; all assumptions are based on the market in the area. Also included are the costs of capital and the internal rate of return which is forecasted for the following 10 years. The functionality of the spreadsheet allows some variables to be changed to meet the needs and desires of the user. Inputs that can be changed have a gray fill color.
Based on the input data currently on the spreadsheet, Accu-Tile would have a weighted average cost of capital equal to 6.20% with an internal rate of return of 8.50%. These values are subject to change based on the inputs. Adjusting the debt and equity proportions will cause such a change.
After analyzing the data and researching the market, we believe that the price listed for Accu-Tile should be closer to $1,000,000. If the forecast remains close to true, the company should be expecting increasing positive net income. In our opinion, and assuming the data provided is of reasonable value, we would endorse the purchase at the amount listed above.