Deal Lab · Buyout model 1.0
PT United Tractors Tbk Buyout Model
A buyout of PT United Tractors 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
0.3%
Multiple of money
1.02x
Sponsor's equity
Rp182.79tn
Enterprise value
Rp350.11tn
Proceeds at exit
Rp185.62tn
Sources and Uses
| Uses | Amount |
|---|---|
| Equity price | Rp353.25tn |
| Borrowings refinanced | Rp16.30tn |
| Transaction costs | Rp7.00tn |
| Financing fees | Rp3.47tn |
| Minimum cash | Rp2.63tn |
| Uses | Rp382.64tn |
| Sources | Amount |
|---|---|
| Senior loan | Rp129.96tn |
| Subordinated notes | Rp43.32tn |
| Cash of the company | Rp26.57tn |
| Sponsor's equity | Rp182.79tn |
| Sources | Rp382.64tn |
Projection
| Closing | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Revenue | Rp131.30tn | Rp131.30tn | Rp131.30tn | Rp131.30tn | Rp131.30tn | Rp131.30tn |
| EBITDA of the case | Rp35.01tn | Rp35.01tn | Rp35.01tn | Rp35.01tn | Rp35.01tn | Rp35.01tn |
| Cash cost of leases | Rp1.43tn | Rp1.43tn | Rp1.43tn | Rp1.43tn | Rp1.43tn | Rp1.43tn |
| Depreciation and amortisation | Rp12.20tn | Rp12.20tn | Rp12.20tn | Rp12.20tn | Rp12.20tn | |
| Capital expenditure | Rp12.98tn | Rp12.98tn | Rp12.98tn | Rp12.98tn | Rp12.98tn | |
| Increase in working capital | Rp0 | Rp0 | Rp0 | Rp0 | Rp0 | |
| Interest | Rp17.11tn | Rp16.90tn | Rp16.67tn | Rp16.43tn | Rp16.16tn | |
| Tax | Rp1.20tn | Rp1.24tn | Rp1.29tn | Rp1.35tn | Rp1.41tn | |
| Cash available for debt service | Rp19.41tn | Rp19.37tn | Rp19.32tn | Rp19.26tn | Rp19.20tn |
Debt Schedule
| Closing | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Senior loan | Rp129.96tn | Rp127.66tn | Rp125.19tn | Rp122.54tn | Rp119.71tn | Rp116.66tn |
| Subordinated notes | Rp43.32tn | Rp43.32tn | Rp43.32tn | Rp43.32tn | Rp43.32tn | Rp43.32tn |
| Revolving facility | Rp0 | Rp0 | Rp0 | Rp0 | Rp0 | Rp0 |
| Cash | Rp2.63tn | Rp2.63tn | Rp2.63tn | Rp2.63tn | Rp2.63tn | Rp2.63tn |
| Debt to EBITDA | 5.00x | 4.93x | 4.86x | 4.79x | 4.71x | 4.62x |
| EBITDA to interest | 2.05x | 2.07x | 2.10x | 2.13x | 2.17x |
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 | 4.93x | 4.86x | 4.79x | 4.71x | 4.62x |
| Band of debt to EBITDA | Highly leveraged | Aggressive | Aggressive | Aggressive | Aggressive | Aggressive |
Return Bridge
| Amount | |
|---|---|
| Sponsor's equity | Rp182.79tn |
| EBITDA growth | Rp0 |
| Change of multiple | Rp0 |
| Net debt repaid | +Rp13.30tn |
| Non-controlling interests | Rp0 |
| Costs at closing | −Rp10.47tn |
| Management and limited liability | Rp0 |
| Proceeds at exit | Rp185.62tn |
Sensitivity Tables
| Entry by exit | 8.00x | 9.00x | 10.0x | 11.0x | 12.0x |
|---|---|---|---|---|---|
| 8.00x | 1.2% | 6.3% | 10.6% | 14.3% | 17.6% |
| 9.00x | −4.7% | 0.5% | 4.8% | 8.4% | 11.7% |
| 10.0x | −8.8% | −3.8% | 0.3% | 3.8% | 6.9% |
| 11.0x | −12.0% | −7.2% | −3.2% | 0.2% | 3.2% |
| 12.0x | −14.6% | −9.9% | −6.1% | −2.8% | 0.1% |
| Debt by growth | −4.0% | −2.0% | 0.0% | 2.0% | 4.0% |
|---|---|---|---|---|---|
| 4.00x | −5.4% | −1.7% | 1.7% | 5.0% | 8.1% |
| 4.50x | −7.0% | −2.8% | 1.1% | 4.7% | 8.1% |
| 5.00x | −9.0% | −4.1% | 0.3% | 4.3% | 8.1% |
| 5.50x | −11.8% | −5.8% | −0.6% | 3.9% | 8.1% |
| 6.00x | −16.0% | −8.0% | −1.9% | 3.4% | 8.1% |
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%
11.2%
The target return
Debt capacity at closing, times EBITDA
5.11x
The interest cover or the limit of debt to EBITDA
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, 19 October 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 | 26.7% | EBITDA over revenue, fiscal 2025 |
| Operations | Cash cost of leases, of revenue | 1.1% | Cash cost of leases over revenue, fiscal 2025 |
| Operations | Depreciation and amortisation, of revenue | 9.3% | Depreciation and amortisation over revenue, fiscal 2025 |
| Operations | Capital expenditure, of revenue | 9.9% | Median capital expenditure over revenue, fiscal 2023 to 2025 |
| Operations | Working capital, of revenue | 5.6% | 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 | Rp35.01tn | 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 | Rp35.01tn | Adjusted EBITDA less share-based pay | Annual report 2025-12 |
| Depreciation and amortisation | Rp12.20tn | Depreciation and amortisation of adjusted EBITDA | Annual report 2025-12 |
| Revenue | Rp131.30tn | Revenue of the base period | Annual report 2025-12 |
| Borrowings | Rp16.30tn | Total debt less lease liabilities | Annual report 2025-12 |
| Lease liabilities | Rp1.78tn | Lease liabilities | Annual report 2025-12 |
| Cash and short-term investments | Rp26.57tn | Cash and short-term investments | Annual report 2025-12 |
| Non-controlling interests | Rp5.36tn | Non-controlling interests | Annual report 2025-12 |
| Receivables | Rp19.92tn | Receivables | Annual report 2025-12 |
| Payables | Rp29.31tn | Payables | Annual report 2025-12 |
| Inventories | Rp16.73tn | Inventories | Annual report 2025-12 |
| Payments of lease liabilities | Rp1.17tn | Payments of lease liabilities | Annual report 2025-12 |
| Interest on lease liabilities | Rp258bn est. | Interest on lease liabilities at the average rate of finance costs on total debt | Annual report 2025-12 |
| Capital expenditure | Rp12.98tn | 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.