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Best Traditional bank In Town

Since 1872

Khakis ‘R Us

Valuation

MBA Investment Lenders LLC

January, 2014

Exec Summary

• Evaluation of NYC Capital Offer

— Comparable Corporations Analysis

$24. 64-$32. 85

— Preceding Transaction Analysis

$21. 99-$30. 43

— Discounted Income Analysis

$25. 03-$33. 74

• Suggestions

— Counteroffer

$20/share + Earnout of 75% EBITDA over three years

$25. 18-$30. 03

— Defensive Approach

Shareholder Rights Plan + Buyback

— One Year From Now

About Boots, Valuation Range

Khakis ‘R Us & MASTER OF BUSINESS ADMINISTATION Investment Brokers LLC Secret

2

Comparable Company Research

Comparables determined by Income, EBITDA, and EBIT characters.

Narrowed down group to Companies three or more & eight.

We all chose the corporations where the amounts fell within 50% previously mentioned or under Khaki ‘R Us numbers.

All of us used the median EBIT multiplier to get the computation for the reduced range figure and median EBITDA multiplier for the calculation intended for the high range physique.

Range: $24. 64 – $32. 80

Khakis ‘R Us & MBA Expenditure Bankers LLC Confidential

three or more

Precedent Ventures Analysis

For Preceding Transactions, the selection criteria was Revenue and EBITDA.

Selected identical transactions to get companies were within fifty percent of Khakis ‘R Us EBITDA and Revenue.

Narrowed the choice to transactions 7, almost 8, 12, & 18.

We employed the Median figures of Revenue and EBITDA as our selection.

Range: $21. 99 – $30. 43

Khakis ‘R Us & MBA Investment Bankers LLC Confidential

some

Discounted Cash Flow (DCF) Evaluation

 Beta of 2. 235 used by discovering comparable businesses based on identical EBITDA and Revenue.

 WACC of 13. 97%

 Income CAGR of 5. 4%

Range: $25. 03 – $33. 74

Khakis ‘R Us & MBA Purchase Bankers LLC Confidential

five

Total Valuation

$200M

20 dollars. 00

<

$250. 3M - $304. 3M

$25. 03 – $30. 43

Executive Synopsis

• Evaluation of NEW YORK CITY Capital Present

— Identical Companies Evaluation

$24. 64-$32. 90

— Precedent Deal Analysis

$21. 99-$30. 43

— Cheaper Cash Flow Examination

$25. 03-$33. 74

• Recommendations

— Counteroffer

$20/share + Earnout of 73% EBITDA more than 3 years

$25. 18-$30. 03

— Protective Strategy

Shareholder Rights Program + Buyback

— Twelve months From Right now

About Boots, Valuation Selection

Khakis ‘R Us & MBA Expenditure Bankers LLC Confidential

several

Earnout

• $20/Share & 75% EBITDA over the following 3 years: $25. 18-$30. goal EBITDA Earnout

Dollars Attained Per Year

some. 5

some

3. your five

3

installment payments on your 5

Conservative

2

Forecasted

1 . 5

1

zero. 5

zero

2014

2015

2016

Yr

8

Shielding Strategy

• Implement Shareholders Rights Plan

— Permit trigger to market discounted stocks and shares if anybody party receives a large percentage of excellent shares

— Forces table approval intended for acquisition

• Stock Buyback

— Use cash to buyback share

— Permits re-issue intended for Shareholders Legal rights Plans

— Limits shareholder controlling potential

— Exceptional investment given valuation and current selling price

9

One Year from At this point

• NYC Capital Approval of Offer

— Forecasted

$20. 00 + 74% ($35M) = $22. 63 Paid + 2 years leftover

— Traditional Estimate

20 dollars. 00 & 75%($17. 5M) = $21. 31 Paid + 2 years remaining

• Remain Independent

— EBITDA Multiple Valuation

$23. 22 - $31. 56

— About Boot styles

Investigate Financials

10

Thanks a lot

Khakis ‘R Us & MBA Expense Bankers LLC Confidential

10

Supplemental Details

• Income Statement

• Balance Sheet

• Comparable Firms

• Preceding Transactions

• Discounted Cashflow

Khakis ‘R Us & MBA Expenditure Bankers LLC Confidential

doze

Khakis ‘R Us Profits Statement

Khakis ‘R Us Balance Sheet

Similar Analysis

Preceding Analysis

DCF Based on Current Projections

DCF Cash Flow Depending on Current Projections

Author: Эрнарий
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