# StreetCred Free Trial Case Study: Harbour Snacks Pty Ltd

## Purpose

This free trial case is designed to test whether you have the basic modelling knowledge required to attempt StreetCred's full modelling case studies. An experienced analyst should be able to complete the model in **30 minutes or less**.

The model deliberately keeps the calculations simple. The assessment is testing whether you understand core three-statement, DCF, and LBO concepts — not whether you can handle unnecessary complexity.

## Background

Harbour Snacks Pty Ltd ("Harbour Snacks") is a simplified packaged-food business that sells premium snack products to supermarkets and convenience stores. A financial sponsor is considering acquiring the business and has asked you to complete a short model to assess operating performance, DCF value, and LBO returns.

You have been provided with an Excel model template. Complete the blank cells in the workbook using the assumptions below and the pre-filled assumptions in the Assumptions tab.

## Required workbook tabs

The model contains four tabs:

1. **Assumptions** — operating, opening balance sheet, DCF, and LBO assumptions.
2. **3 Statement Model** — a simple integrated income statement, balance sheet, and cash flow statement.
3. **DCF** — a simple enterprise-value calculation using unlevered free cash flow.
4. **LBO** — a simple transaction sources & uses, debt schedule, and returns calculation.

## Timing

- Historical / starting year: **2022A**
- Forecast years: **2023F to 2027F**
- Currency: **A$000**, unless otherwise stated.

## Operating assumptions

Use the following assumptions:

- 2022 Revenue: **A$25,000k**
- Revenue growth:
  - 2023: **12.0%**
  - 2024: **10.0%**
  - 2025: **8.0%**
  - 2026: **6.0%**
  - 2027: **5.0%**
- EBITDA margin:
  - 2022: **18.0%**
  - 2023: **19.0%**
  - 2024: **20.0%**
  - 2025: **21.0%**
  - 2026: **22.0%**
  - 2027: **23.0%**
- D&A: **3.0% of revenue**
- Cash tax rate: **30.0%**
- Net working capital: **12.0% of revenue**
- Capex: **4.0% of revenue**

## Opening balance sheet assumptions

Use the following opening balances before the 2022 model year:

- Opening cash: **A$1,500k**
- Opening net working capital: **A$2,700k**
- Opening PP&E: **A$8,000k**
- Opening debt: **A$5,000k**
- Interest rate on debt: **6.0%**

Assume no dividends, no share issuances, and no debt repayment in the three-statement model.

## DCF assumptions

- Use unlevered free cash flow calculated as:
  - **NOPAT + D&A - Capex - Increase in NWC**
- WACC: **10.0%**
- Terminal growth rate: **3.0%**
- Use a mid-year discounting convention.

## LBO assumptions

- Purchase price: **7.0x 2022 EBITDA**
- Opening debt: **3.0x 2022 EBITDA**
- Sponsor equity funds the balance of the purchase price.
- Use free cash flow after capex to repay debt each year.
- Exit year: **2027**
- Exit multiple: **8.0x 2027 EBITDA**
- Calculate exit equity value, MOIC, and IRR.

## Modelling guidance

- Keep formulas simple and copyable across rows wherever possible.
- Source operating and valuation assumptions from the **Assumptions** tab.
- Use outputs from the **3 Statement Model** tab in the **DCF** and **LBO** tabs.
- Check that the balance sheet balances in every year.
- Show negative numbers in parentheses and zeros as dashes.
- Follow the StreetCred model formatting conventions in the workbook.

## Submission scoring

After completing the workbook, the submission form will ask for a random selection of outputs, such as revenue, EBITDA, NPAT, total assets, total liabilities & equity, net cash flow, enterprise value, MOIC, or IRR. Enter the values from your completed model into the form.