Tool · Private equity

Vendor costvalue bridge.

What the vendor base is worth at exit. Revenue, margin, multiple and spend by category in; an EBITDA bridge, margin expansion and enterprise value out. Built for the IC memo and the 100-day plan. Nothing is stored or sent unless you ask for the summary.

Worked example. Replace with the target or portfolio company.

The company

Revenue, margin and the multiple

Revenue ($M)

Exit multiple (x EBITDA)

EBITDA margin14%

Captured inside the first 100 days40%

The vendor base

Spend by category, as a share of revenue

Use the management accounts or the GL vendor file. If a category is not material, set it to zero.

Enterprise value from vendor cost at exit

0%EBITDA uplift, run-rate

0 ptsMargin expansion

$0Captured in 100 days

EBITDA bridge, run-rate

Recovery uses the lower half of the ranges we use in diligence: agency and media 6 to 11%, production and martech 8 to 15%, software and SaaS 10 to 17%, cloud 10 to 18%, telecom and IT services 10 to 17%. Net of one-off costs to capture. Directional only. A Deal Vendor Review replaces these with the target's own contracts, usually inside two to three weeks of data room access.

Working on a deal?

Tell us the stage. A Deal Vendor Review turns this into the target’s own numbers, usually inside two to three weeks.

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