Deal Lab · Buyout model 1.0
PT Link Net Tbk Buyout Model
A buyout of PT Link Net Tbk on its published figures for fiscal 2025, in rupiah: revenue flat, the margin and the shares of revenue of that period, entry and exit at 10.0x EBITDA, exit after 5 years.
Returns
Internal rate of return
−100%
Multiple of money
0.00x
Sponsor's equity
Rp4.03tn
Enterprise value
Rp7.49tn
Proceeds at exit
Rp0
Sources and Uses
| Uses | Amount |
|---|---|
| Equity price | Rp853bn |
| Borrowings refinanced | Rp7.00tn |
| Transaction costs | Rp150bn |
| Financing fees | Rp74.8bn |
| Minimum cash | Rp61.6bn |
| Uses | Rp8.14tn |
| Sources | Amount |
|---|---|
| Senior loan | Rp2.81tn |
| Subordinated notes | Rp935bn |
| Cash of the company | Rp361bn |
| Sponsor's equity | Rp4.03tn |
| Sources | Rp8.14tn |
Projection
| Closing | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Revenue | Rp3.08tn | Rp3.08tn | Rp3.08tn | Rp3.08tn | Rp3.08tn | Rp3.08tn |
| EBITDA of the case | Rp749bn | Rp749bn | Rp749bn | Rp749bn | Rp749bn | Rp749bn |
| Cash cost of leases | Rp6.4bn | Rp6.4bn | Rp6.4bn | Rp6.4bn | Rp6.4bn | Rp6.4bn |
| Depreciation and amortisation | Rp1.68tn | Rp1.68tn | Rp1.68tn | Rp1.68tn | Rp1.68tn | |
| Capital expenditure | Rp2.78tn | Rp2.78tn | Rp2.78tn | Rp2.78tn | Rp2.78tn | |
| Increase in working capital | Rp0 | Rp0 | Rp0 | Rp0 | Rp0 | |
| Interest | Rp369bn | Rp432bn | Rp430bn | Rp427bn | Rp425bn | |
| Tax | Rp0 | Rp0 | Rp0 | Rp0 | Rp0 | |
| Cash available for debt service | −Rp2.04tn | −Rp2.04tn | −Rp2.04tn | −Rp2.04tn | −Rp2.04tn |
Debt Schedule
| Closing | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Senior loan | Rp2.81tn | Rp2.78tn | Rp2.75tn | Rp2.72tn | Rp2.69tn | Rp2.67tn |
| Subordinated notes | Rp935bn | Rp935bn | Rp935bn | Rp935bn | Rp935bn | Rp935bn |
| Revolving facility | Rp0 | Rp749bn | Rp749bn | Rp749bn | Rp749bn | Rp749bn |
| Cash | Rp61.6bn | −Rp1.62tn | −Rp4.12tn | −Rp6.61tn | −Rp9.10tn | −Rp11.59tn |
| Debt to EBITDA | 5.00x | 5.96x | 5.93x | 5.89x | 5.85x | 5.81x |
| EBITDA to interest | 2.03x | 1.73x | 1.74x | 1.75x | 1.76x |
Covenants and the Credit View
| Closing | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Limit of debt to EBITDA | 6.50x | |||||
| Lease-adjusted debt to EBITDA | 5.00x | 5.96x | 5.93x | 5.89x | 5.85x | 5.81x |
| Band of debt to EBITDA | Highly leveraged | Highly leveraged | Highly leveraged | Highly leveraged | Highly leveraged | Highly leveraged |
Return Bridge
| Amount | |
|---|---|
| Sponsor's equity | Rp4.03tn |
| EBITDA growth | Rp0 |
| Change of multiple | Rp0 |
| Net debt repaid | −Rp12.26tn |
| Non-controlling interests | Rp0 |
| Costs at closing | −Rp225bn |
| Management and limited liability | +Rp8.45tn |
| Proceeds at exit | Rp0 |
Sensitivity Tables
| Entry by exit | 8.00x | 9.00x | 10.0x | 11.0x | 12.0x |
|---|---|---|---|---|---|
| 8.00x | n/a | n/a | n/a | n/a | n/a |
| 9.00x | −100% | −100% | −100% | −100% | −100% |
| 10.0x | −100% | −100% | −100% | −100% | −100% |
| 11.0x | −100% | −100% | −100% | −100% | −100% |
| 12.0x | −100% | −100% | −100% | −100% | −100% |
| Debt by growth | −4.0% | −2.0% | 0.0% | 2.0% | 4.0% |
|---|---|---|---|---|---|
| 4.00x | −100% | −100% | −100% | −100% | −100% |
| 4.50x | −100% | −100% | −100% | −100% | −100% |
| 5.00x | −100% | −100% | −100% | −100% | −100% |
| 5.50x | −100% | −100% | −100% | −100% | −100% |
| 6.00x | −100% | −100% | −100% | −100% | −100% |
Solvers
Highest entry multiple for a return of 20.0%
n/a
No entry multiple reaches the target
Revenue growth a year for a return of 20.0%
49.0%
The target return
Debt capacity at closing, times EBITDA
n/a
The covenants fail without new debt
Assumptions and Their Origins
| Group | Assumption | Value | Origin |
|---|---|---|---|
| Transaction | Entry multiple | 10.0x | Convention of buyout 1.0 |
| Transaction | Years to exit | 5 years | Convention of buyout 1.0 |
| Transaction | Transaction costs | 2.0% | Convention of buyout 1.0 |
| Transaction | Financing fees | 2.0% | Convention of buyout 1.0 |
| Transaction | Minimum cash, of revenue | 2.0% | Convention of buyout 1.0 |
| Financing | Debt at closing, times EBITDA | 5.00x | Convention of buyout 1.0 |
| Financing | Debt at most, of the enterprise value | 60.0% | Convention of buyout 1.0 |
| Financing | Senior loan, of the new debt | 75.0% | Convention of buyout 1.0 |
| Financing | Senior loan repaid each year | 1.0% | Convention of buyout 1.0 |
| Financing | Cash sweep | 100% | Convention of buyout 1.0 |
| Financing | Revolving facility, times EBITDA | 1.00x | Convention of buyout 1.0 |
| Financing | Base rate | 5.8% | Policy rate of Indonesia, BIS central bank policy rates, 6 November 2026 |
| Financing | Senior loan spread | 3.5% | Convention of buyout 1.0 |
| Financing | Subordinated notes spread | 6.0% | Convention of buyout 1.0 |
| Financing | Revolving facility spread | 3.0% | Convention of buyout 1.0 |
| Financing | Covenant headroom on debt to EBITDA | 30.0% | Convention of buyout 1.0 |
| Financing | Minimum EBITDA to interest | 2.00x | Convention of buyout 1.0 |
| Operations | Revenue growth a year | 0.0% | Convention of buyout 1.0 |
| Operations | EBITDA margin | 24.3% | EBITDA over revenue, fiscal 2025 |
| Operations | Cash cost of leases, of revenue | 0.2% | Cash cost of leases over revenue, fiscal 2025 |
| Operations | Depreciation and amortisation, of revenue | 54.5% | Depreciation and amortisation over revenue, fiscal 2025 |
| Operations | Capital expenditure, of revenue | 90.2% | Median capital expenditure over revenue, fiscal 2023 to 2025 |
| Operations | Working capital, of revenue | −0.1% | Working capital over revenue, end of the fiscal 2025 |
| Operations | Leases as debt | Yes | Leases as debt, the basis of the credit metrics |
| Operations | Share-based pay added back | No | Convention of buyout 1.0 |
| Taxes | Tax rate | 22.0% | Combined statutory rate of corporate income tax of Indonesia, OECD Corporate Tax Statistics, 2026 |
| Taxes | Interest deducted up to 30% of EBITDA | No | Convention of buyout 1.0 |
| Exit | Exit multiple | 10.0x | Convention of buyout 1.0 |
| Exit | Management share of the proceeds | 0.0% | Convention of buyout 1.0 |
| Exit | Target return | 20.0% | Convention of buyout 1.0 |
Inputs and Their Documents
Published figures of fiscal 2025, each with the documents it comes from.
| Input | Value | Method | Documents |
|---|---|---|---|
| Adjusted EBITDA | Rp749bn | Adjusted EBITDA of the company page | Annual report 2025-12 |
| Share-based pay | Rp0 | No share-based pay is reported | Annual report 2025-12 |
| EBITDA after share-based pay | Rp749bn | Adjusted EBITDA less share-based pay | Annual report 2025-12 |
| Depreciation and amortisation | Rp1.68tn | Depreciation and amortisation of adjusted EBITDA | Annual report 2025-12 |
| Revenue | Rp3.08tn | Revenue of the base period | Annual report 2025-12 |
| Borrowings | Rp7.00tn | Total debt less lease liabilities | Annual report 2025-12 |
| Lease liabilities | Rp6.1bn | Lease liabilities | Annual report 2025-12 |
| Cash and short-term investments | Rp361bn | Cash and short-term investments | Annual report 2025-12 |
| Non-controlling interests | Rp9.0m | Non-controlling interests | Annual report 2025-12 |
| Receivables | Rp740bn | Receivables | Annual report 2025-12 |
| Payables | Rp745bn | Payables | Annual report 2025-12 |
| Inventories | Rp0 | The balance sheet reports none | n/a |
| Payments of lease liabilities | Rp5.9bn | Payments of lease liabilities | Annual report 2025-12 |
| Interest on lease liabilities | Rp444m est. | Interest on lease liabilities at the average rate of finance costs on total debt | Annual report 2025-12 |
| Capital expenditure | Rp1.20tn | Capital expenditure of the latest fiscal year | Annual report 2025-12 |
Checks of the Model
- Sources equal uses
- The equity price is above nil
- The sponsor's equity is above nil
- Each balance of debt stays between nil and its amount at closing
- Cash is the cash of the year before and the cash flow of the year
- Cash stays at the minimum unless a shortfall is stated
- The 6 parts of the bridge add up to the proceeds less the sponsor's equity
- The cash flows at the internal rate of return have a present value of nil
Deal Lab computes arithmetic on published figures and on the assumptions of the user. It values no company, recommends no transaction and forecasts no result.