finance

Having in mind that all the finances are approximate just to know the profitability, I made a set of assumptions and created all the statements. Well, not all of them, causeI really hate making cash flow statement, that's why I took only approximate one for market capitalization calculation.

1. PnL.
a. I put approximate occupancy (I really understand that it is a bit too high, but nevertheless...) and average price. Simple revenue model!
b. CoGS are not really relevant, cause in case of cruise we have huge overheads, and variable costs are not that big. I just put 15%.
c. OVH are divided into the following pieces:
- yacht operating (fuel, crew salaries, repairment, putting on water, insurance and even property tax), which are considered as 10% of yacht cost (benchmark I received from one of the articles),
- dry land costs - office salaries and rents,
- bad debt - just to make a provision,
- marketing - which is mostly for website creation and contacts, the excess amount will be put into sales bonus, cause the team really matters here and all marketing should be personal.
d. Depreciation - straightforward method of 4,5 mio of investments (benchmark received from my friend who reall thought of building luxury yacht at Admiral Shipyards of St.Petersburg) for 30 years (time before next big repairment).
e. Corporate tax - 32%.

2. Balance sheet.
a. Cash - balancing line.
b. AR - 60 day turnover.
c. AP - 30 day turnover.
d. Non-comm creditors - 5% of GA+Mrkg+Design

3. Marcap. Discounted cash flow method.
a. WACC - 12% (just more or less relevant).
b. Growth - 2%
c. 10 years period.

Why 10 years? Well, because I can calculate). To be serious, first couple of years normally we spend to generate positive cashflow and profit, 3-5 more to cover initial investments, and 3-5 more to generate investor's revenue. Or just following the advise of Paz Ambrozy, VC and our finacial enterpreneurship professor.

I will make a screenshots of files and post later.