Case study · Private equity · Athleisure & golf apparel
UNRL
An independent LBO analysis of UNRL, a fast-growing athleisure and golf lifestyle apparel brand, modeling a $120M enterprise value, aggressive revenue growth and margin expansion, and sponsor returns over a five-year hold.
Independent student underwriting. Operating projections and returns are illustrative model estimates, not disclosed company results; see the workbook for full assumptions and schedules.
Download Excel ModelView the complete assumptions, cash flows, and projected returns.
These returns reflect an aggressive illustrative LBO scenario built on assumed brand growth, margin expansion, and exit multiple expansion. Actual outcomes for a transaction like this would vary materially based on market conditions, operating execution, and buyer appetite at exit.
- Enterprise Value
- $120M
- modeled acquisition price
- Entry Multiple
- 10.0×
- on $12M LTM EBITDA
- Levered IRR
- 58.4%
- 5-year hold
- Levered MOIC
- 8.01×
- on $69M sponsor equity
01 · The Business
A high-growth golf lifestyle brand, underwritten for scale and deleveraging.
The model evaluates UNRL Apparel, an athleisure and golf lifestyle brand, through a sponsor-led buyout at a $120M enterprise value — 10.0× LTM 2026 EBITDA of $12M. The baseline assumes $85M of LTM revenue, having grown from $45M in 2023, with gross margin expanding from 55% to 60% over that period.
The $123M sources-and-uses model includes $54M of senior debt at 4.5× EBITDA, $69M of sponsor equity, and $3M of transaction fees. Financing is modeled at 9% interest with six-year amortization and a 75% cash sweep. The five-year exit assumes 9.0× EBITDA — a full turn below the entry multiple.
02 · Investment Thesis
Top-line growth, operating leverage, and rapid deleveraging.
Growth
Revenue grows 20% in Years 1–2, 15% in Years 3–4, and 10% in Year 5, reaching $178.1M by exit — more than double the $85M LTM baseline.
Operations
Gross margin expands 100 basis points per year to 65% while OpEx falls from 45.9% to 33.4% of revenue, lifting EBITDA margin from 14.1% to 31.6%.
Capital
Mandatory amortization and a 75% cash sweep retire the full $54M of senior debt by Year 3, so the return case carries no exit refinancing risk.
03 · Financial Analysis
EBITDA reaches $56.3M by Year 5.
From a $12M baseline, modeled EBITDA rises to $18.9M in Year 1 and $56.3M in Year 5 — a 4.7× increase. With debt fully repaid by Year 3, the $507M exit enterprise value at 9.0× EBITDA flows almost entirely to equity. The 31.6% exit EBITDA margin assumes a maturing DTC channel mix, premium brand pricing power similar to peer athleisure brands (Vuori, Lululemon golf category), and operating leverage from scaling marketing and overhead across a growing revenue base. This margin is at the high end of achievable for a premium golf apparel brand; a more conservative scenario would be 22-26%.
- Levered IRR
- 58.4%
- Levered MOIC
- 8.01×
- Exit EBITDA
- $56.3M
- Exit Enterprise Value
- $507.0M
- Debt at Exit
- $0
04 · Key Assumptions
Underwriting Summary
- Enterprise Value
- $120,000,000
- Sector
- Athleisure & Golf Lifestyle Apparel
- Transaction Type
- Sponsor-Led Buyout
- LTM Revenue (2026E)
- $85,000,000
- LTM EBITDA (2026E)
- $12,000,000
- Senior Debt
- $54.0M · 4.5× EBITDA
- Sponsor Equity
- $69,000,000
- Interest / Amortization
- 9.0% / 6-yr
- Cash Sweep
- 75% of excess FCF
- Hold / Exit Multiple
- 5 Years / 9.0×
05 · Analyst Takeaway
Key Takeaways
The model's return case is built almost entirely on operating growth, not financial engineering. The returns bridge attributes $443M of value creation to EBITDA growth and $54M to debt paydown, offset by a $56M drag from exiting a full turn below the entry multiple — producing a modeled 58.4% levered IRR and 8.01× MOIC. The central underwriting question is whether a brand growing this fast can sustain 20% revenue growth and 100 basis points of annual margin expansion simultaneously; these are aggressive illustrative assumptions, not disclosed company forecasts.