Since 1872 Khakis ‘R Us Valuation MBA Investment Bankers LLC January, 2014 Executive Summary • Evaluation of NYC Capital Offer — Comparable Companies Analysis $24. 64-$32. 90 — Precedent Transaction Analysis $21. 99-$30. 43 — Discounted Cash Flow Analysis $25. 03-$33. 74 • Recommendations — Counteroffer $20/share + Earnout of 75% EBITDA over 3 years $25. 18-$30. 03 — Defensive Strategy Shareholder Rights Plan + Buyback — One Year From Now About Boots, Valuation Range Khakis ‘R Us & MBA Investment Bankers LLC Confidential 2 Comparable Company Analysis • Comparables determined by Revenue, EBITDA, and EBIT figures.
• Narrowed down group to Companies 3 & 8. • We chose the companies where the ranges fell within 50% above or below Khaki ‘R Us figures. • We used the median EBIT multiplier for the calculation for the low range figure and median EBITDA multiplier for the calculation for the high range figure. Range: $24. 64 – $32. 90 Khakis ‘R Us & MBA Investment Bankers LLC Confidential 3 Precedent Transactions Analysis • For Precedent Transactions, the selection criteria was Revenue and EBITDA. • Selected comparable transactions for companies were within 50% of Khakis ‘R Us EBITDA and Revenue.
• Narrowed the selection to transactions 7, 8, 12, & 18. • We used the Median figures of Revenue and EBITDA as our range. Range: $21. 99 – $30. 43 Khakis ‘R Us & MBA Investment Bankers LLC Confidential 4 Discounted Cash Flow (DCF) Analysis ? Beta of 2. 235 used by identifying comparable companies based on similar EBITDA and Revenue. ? WACC of 13. 97% ? Revenue CAGR of 5. 4% Range: $25. 03 – $33. 74 Khakis ‘R Us & MBA Investment Bankers LLC Confidential 5 Total Valuation $200M $20. 00 < $250. 3M – $304. 3M $25. 03 – $30. 43 Executive Summary • Evaluation of NYC Capital Offer.
The Term Paper on Hershey History Financial Report Analysis Company Profile
Financial report analysis of Hershey Foods Corporation, Hershey Foods HistoryINTRODUCTIONHershey Foods Corporation is engaged, with its subsidiaries, in the manufacture, distribution and sale of confectionery and grocery products. The Company's principal product groups include confectionery products sold in the form of bar goods, bagged items and boxed items, as well as grocery products in the ...
Comparable Companies Analysis $24. 64-$32. 90 — Precedent Transaction Analysis $21. 99-$30. 43 — Discounted Cash Flow Analysis $25. 03-$33. 74 • Recommendations — Counteroffer $20/share + Earnout of 75% EBITDA over 3 years $25. 18-$30. 03 — Defensive Strategy Shareholder Rights Plan + Buyback — One Year From Now About Boots, Valuation Range Khakis ‘R Us & MBA Investment Bankers LLC Confidential 7 Earnout • $20/Share + 75% EBITDA over the next 3 years: $25. 18-$30. 03 EBITDA Earnout Dollars Earned Per Year 4. 5 4 3. 5 3 2. 5 Conservative 2 Projected 1. 5 1 0. 5 0 2014 2015.
Year 8 Defensive Strategy • Implement Shareholders Rights Plan — Enable trigger to sell discounted shares if any one party acquires a large percentage of outstanding shares — Forces board approval for acquisition • Stock Buyback — Use cash to buyback stock — Allows for re-issue for Shareholders Rights Plans — Limits shareholder controlling potential — Excellent investment given valuation and current price 9 One Year from Now • NYC Capital Acceptance of Offer — Projected $20. 00 + 75% ($35M) = $22. 63 Paid + 2 years remaining — Conservative Estimate $20. 00 + 75%($17.5M) = $21. 31 Paid + 2 years remaining • Remain Independent — EBITDA Multiple Valuation $23. 22 – $31. 56 — About Boots Investigate Financials 10 Thank you Khakis ‘R Us & MBA Investment Bankers LLC Confidential 11 Supplemental Information • Income Statement • Balance Sheet • Comparable Companies • Precedent Transactions • Discounted Cash Flow Khakis ‘R Us & MBA Investment Bankers LLC Confidential 12 Khakis ‘R Us Income Statement Khakis ‘R Us Balance Sheet Comparable Analysis Precedent Analysis DCF Based on Current Projections DCF Cash Flow Based on Current Projections.
