Equity Value - Husky Traders

Report
Meridian Capital
November 6, 2013
Table of Contents
Section
Introductions
I
Investment Banking Overview
II
Meridian Capital Overview
III
The Recruiting Process
IV
Appendix: Valuation Overview
V
2
Introductions
Michael Hubert, Analyst
Michael joined Meridian as an analyst in 2012 after completing an 18 month internship with the firm. At Meridian, Michael works across a
variety of industries providing market research, financial analysis, and due diligence. Prior to joining Meridian, Michael worked as an Intern
in Merrill Lynch’s Wealth Management Group in Bellevue, WA. At Merrill Lynch, he conducted mutual fund research and analyzed the
effectiveness of portfolio sell criteria. Michael has also worked as a research assistant at Centerstone Executive Search, a Seattle-based
executive recruiting firm, where he was in charge of the research, design, and presentation of corporate succession planning projects.
Michael is a graduate of the University of Washington, where he earned a double major in finance and accounting, magna cum laude.
Nick Colmenero, Analyst
Nick joined Meridian as an analyst in 2013 after completing his undergraduate degree. At Meridian, Nick works across a variety of
industries providing market research, financial analysis, and due diligence. Prior to joining Meridian, Nick worked as an intern for JPMorgan
Chase & Co. in New York City. While at JPMorgan Chase & Co., Nick spent his time working in a corporate finance capacity, developing
and analyzing various management reports for JP Morgan’s wholesale lines of business. Additionally, Nick spent two summers interning for
PricewaterhouseCoopers and The Boeing Company, respectively. Nick is a graduate of the University of Washington, where he earned a
double major in finance and accounting.
3
Investment Banking Overview
• What is an Investment Bank?
• What is Middle Market Banking?
• The M&A Process
4
What is an Investment Bank?
Most of the largest investment banks have four primary areas:
• Traders: facilitate buying and
selling of all types of securities
• Sales: sale and provide advice
to both retail and institutional
clients
• Trusted advisor to senior
management
• Advise on raising capital,
M&A, takeover defense, etc.
• Wealth management services
for high net-worth individuals
• Develop close relationships
and provide a wide array of
services
Corporate
Finance
Sales &
Trading
Private
Client
Services
Research
• In-depth company and industry
research
5
What is Middle Market Investment Banking?
Strategic, Financial and
Valuation Advisory Services
Raising Capital and Project
Financing
Transaction Services
Mergers and Acquisitions,
Restructuring
• Use industry knowledge,
expertise and contacts to advise
senior executives and boards of
directors
• Equity and equity-linked
• Sell side M&A
• Investment grade debt
• Buy side M&A
• Leveraged finance
• Leverage buyout (LBO)
• Identify and assess strategic
opportunities
• High yield debt
• Hostile takeover / defense
• Interpret market information and
enhance shareholder value
• Specialized securities and
derivatives
• Provide general valuation
services
6
The M&A Process – Details and Timeline
•
A sell side auction process can be completed in as little as 19 weeks or can take up to 6
months
Preparatory phase
(3 -4 weeks)
Marketing phase
(4 - 6 weeks)
Buyer/Investor
Meetings
(4 - 6 weeks)
Structuring and
Negotiation
(8 - 16 weeks)
• Initial due diligence
meeting
• Perform financial
analysis
• Approve buyer list
• Develop blind investment
summary
• Prepare offering
memorandum and
supportive marketing
materials
• Contact prospects
• Field initial due diligence
• Introductory meetings
with prospects
• Select prospects to invite
to management
presentations
• Management and
strategic presentations
• Discuss potential deal
terms and structure
• Coordinate follow-up due
diligence
• Select prospective buyer
to move forward with
•
•
•
•
Key value messages and
objectives defined
Identify synergies and
choose qualified
prospects
Develop strategy and
exchange due diligence
Extract final concessions
and value from preferred
prospect
Solicit letters of intent
Negotiate terms
Complete due diligence
Definitive documentation
signed
7
What Do Investment Banking Analysts Do?
An analyst is the most junior member of the team and provides support to senior level
bankers.
Responsibility
Descriptions
Typical Deliverable
Financial Analysis
Use of excel models to provide transaction,
valuation, and/or financial analysis.
DCF, LBO, Comparable Transaction,
Comparable Companies, Merger Models,
Working Capital Analysis, Flow of Funds,
etc.
Research
Perform detailed research and due diligence on
industries covered. Analysts will use information
from a variety of databases to analyze trends,
competitors, capital markets, and other industry
dynamics.
Industry-related slides for pitch books and
other ad-hoc reports that are used to help
prepare senior level bankers prior to
meetings.
Create Pitch
Books
A pitch book is a marketing tool that is used to
secure deals with prospective clients.
A PowerPoint presentation that includes
firm qualifications, industry research,
potential buyer/investor pools, valuation
analysis, and transaction considerations.
Other
Responsibilities
Analysts at a boutique investment bank will also
be asked to attend client meetings, prepare
marketing materials, and assist with deal
management.
Client presentations, investor
presentations, offering memorandums,
creation and management of data rooms.
8
Meridian Capital Overview
• Investment Banking Services
• Industry Expertise
• Global M&A
• Middle Market Overview
9
Meridian Capital Overview
Track Record of Focusing
on the Middle Market
• Founded in 1995
• Located in Seattle, WA –
clients throughout North
America and Europe
• M&A and Strategic
Advisory Services – sellside, buy-side, and
strategic advisory
• Exclusive focus on middle
market transactions –
transaction values from
$10M - $200M
• Collectively, completed
over 100 transactions with
deal value in excess of $5
billion
Operational Experience
and Vertical Focus
• 14 investment banking
professionals
• Foundation rooted in the
operational experience of
Meridian’s professionals
• Executive experience
across a variety of
verticals including niche
manufacturing, aerospace,
distribution, consumer
goods, and business
services
Global Presence / Access
• Founding member of
Global M&A, an
international investment
banking group
• Unmatched access to
global middle-market
advisors and businesses
Deep Engagement Teams
• Significant senior level
involvement in every
transaction
• Relevant industry
transaction experience
with focus on:
− Manufacturing
• 45 offices worldwide
− Business Services
• International reach is
critical for globalized
industries
− Industrial Services
− Consumer Products
− Healthcare
• Experienced, tenured
support staff
10
Investment Banking Services
Meridian Capital focuses exclusively on serving the investment banking needs of middle-market
business owners and private equity firms
Meridian Capital Service Offering Distribution
40% Sales Process
20% Buy-side Process
• Strategic Sale (100% common)
• Targeted Buy-Side Opportunities
• Minority Sale
• Add-on Acquisitions
• Subsidiary Divestitures
• Merger of Equals
• Succession Planning
• Vertical & Horizontal Acquisitions
25% Recapitalization
15% Strategic Advisory
• Management Buy-Outs
• Exit Strategy Assessment and Roadmap
• New Growth Capital
• Corporate Finance Alternatives
• Liquidity Events
• Market Research and Analysis
• Financial or Strategic Partner
• Strategic Issues and Projects
40%
SALES PROCESS
25%
RECAPITALIZATION
20%
BUY-SIDE PROCESS
15%
STRATEGIC ADVISORY
11
Meridian Industry Expertise
Meridian Capital focuses on industries in which its professionals have substantial operating and
transaction experience.
Industry
Manufacturing
Business Services
Industrial Services
Consumer Products
Healthcare
Sub-Segments
• Electronic Components
• Precision Metal Machining
• Equipment manufacturing and
Assembly
• Aerospace Components
• Technology Enabled Services
• Transportation
• Business-to-Business Services
• Consulting and IT Services
• Heavy Construction
• Crane Rental and Leasing
• Machinery Installation
• Lifting and Heavy Haul
• Juvenile Products
• Specialty Retail
• Housewares
• Outdoor and Sporting Goods
• Medical Devices and Products
• Skilled Nursing
• Assisted Living / Long-Term Care
• Biopharmaceuticals
12
Global M&A
Global M&A Partners is a leading independent
M&A advisory group. Meridian Capital is a
founding member.
Office Locations
• Unparalleled network of prominent middle-market M&A
advisory firms across the world
• Unique access to local knowledge about markets and
available opportunities
• Dedicated senior resources on the ground and
available at all times to our clients
• Firms actively coordinate on projects and routinely
meet to expand relationships and marketing efforts
• Industry sector teams with in-depth knowledge of a
variety of industries
Corporate/Strategic Acquisition of the Year
in 2012 by
North & South
America
Asia & Asia
Pacific
Argentina
Brazil
Canada
Chile
Colombia
El Salvador
Guatemala
Mexico
Panama
Peru
United States
Australia
China
GCC & Yemen
India
Israel
Japan
Europe
Europe
Austria
Belarus
Belgium
Bosnia-Herzegovina
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Hungary
Iceland
Ireland
Italy
Latvia
Netherlands
Norway
Poland
Russia
Serbia
Slovenia
Spain
Sweden
Switzerland
Turkey
UK
Ukraine
13
Recruiting Process
• Interview Process
• Candidate Qualifications/Skills
14
Interview Process
•
Informational Interviews
•
Great way to learn more about the firm, gain exposure to recruiters/bankers
•
Be proactive, reach out directly to banks and schedule interviews on your own
time
•
Don’t be fooled by the name, every interaction with bankers/recruiters is a
chance for them to assess your skills and candidacy
•
1st Round Interviews
• Typically, first round interviews are 1 on 1 or 2 on 1 and usually are conducted by a
Vice President or experienced Associate
• Expect “Walk me through your resume”, “Why banking”, and “Why this firm”
•
2nd Round Interviews
• You will have between one and four interviews and meet more senior bankers
(Directors and Managing Directors)
• Expect some technical questions
15
Candidate Qualifications/Skills
Motivation
•
•
Know why you want to do this job
Make sure you understand what this job is really about!
Business Sense
•
•
Draw on your previous experience
Transferable skills, adaptability, intuition and ability to learn
Personality
•
•
Strong personal presence, energy and empathy
Demonstrate that you can both lead and be a team player
Technical
•
•
Depth of questions depends on background and courses
Demonstrate potential and that you are motivated to learn
High Level Duties:
•
•
•
•
•
Must be self-motivated, possess a strong work ethic, and pay close attention to detail.
Extensive knowledge of accounting and corporate finance. Financial modeling experience.
Ability to manage multiple projects simultaneously.
Strong oral and written communication skills with excellent research and writing capabilities.
Analytical thinker with the ability to articulate complex ideas simply and summarize effectively.
16
Q&A Session
Michael Hubert – Analyst
Nick Colmenero – Analyst
Meridian Capital Contact Info:
[email protected]
[email protected]
17
Appendix: Valuation Overview
18
Valuation Introduction
Valuation is the central discipline in investment banking
Valuation requires interpretation of information and sound judgment
• Dependent on the quality of information available
• Generally expressed as a range
Valuation is about finding equilibrium between risk and reward
• Fair market value = price at which willing buyer and willing seller will transact when both have
complete information
• Different categories of buyers (strategic, sponsors) may be prepared to pay different prices
• Price is affected by many factors including target ownership, market trends, synergies(specific to
buyer), competitive dynamics (e.g. auction vs. negotiated deal), etc.
In the end, a business/asset is only worth what a purchaser will pay for it, irrespective of theory
19
Valuation – Key Definitions
•
Going Concern Value – value of a collection of assets that constitute an operating business
• Future cash flow is key; history may be good predictor
•
Liquidation Value – sale of each asset or collection of assets independently
• Used almost exclusively in a reorganization or restructuring
•
Firm Value (or Enterprise Value)
• Total value of an operating business, regardless of its capital structure
•
Equity Value (or Market Value of Equity, or Market Cap)
• Value of an operating business to its Equity holders
•
Net Debt
• Total Indebtedness for borrowed money
• Preferred claims against the value of the business (preferred stock, “out of the money”
convertible securities, minority interests)
• Less: Cash and cash equivalents
Enterprise
Value
=
Equity Value
+
Net Debt
20
What Drives Valuation?
Discount Multiple
Valuation Scale
EBITDA: 4.0x
Revenue: 0.5x
Premium Multiple
EBITDA: 8.0x
Revenue: 1.5x
Company Scale
• Low sales or EBITDA compared to market segment
• Significant revenue and EBITDA levels within market segment
• History of flat sales or profitability
• History or visibility of strong growth
Operations & Management
• Customer concentration
• Blue-chip, diversified customer base
• Market segment concentration
• Recurring, highly visible revenue
• Product concentration
• Sophisticated operating systems / business model
• Margin pressure (cost or pricing related)
• Professional, deep management team
• Need for management depth
• Strong, defensible margins
• High employee turnover
• Strong, tenured employee base
• Identifiable growth opportunities / potential
• Low capital expenditure requirements
Market Trends / Service Offering
• Small, competitive industry
• Strong, clearly articulated brand definition
• Limited service offering capabilities
• Positive industry dynamics (size, growth prospects, fragmentation)
• Commoditized product
• Diverse product portfolio
• Private label products
• High value-add capabilities
• Highly competitive specialty
• Differentiate products
21
Valuation – A Combination of Approaches
Market Value
Comparable Trading
Companies
Comparable Transaction
•
•
•
•
Starting point for public
company valuation
Still must determine
what an acquirer is will
to pay
•
Valuation on the basis
of key ration, or market
trading multiples
Reference to a set of
comparable public
companies
•
•
Valuation on the basis
of key rations
Reference to selected
precedent transactions
Generally implies
control premium and
synergies
Discounted Cash Flows
LBO Analysis
Other Considerations
•
•
•
•
•
Present value of future
cash flows generated
by the company or the
asset
Appropriate discount
rate (WACC) reflecting
cost of capital at target
capital structure
•
•
Value that a financial
sponsor would pay
Based on target rate of
return
Specific capital
structure with large
debt component
(maximize returns)
•
•
•
Equity research
Estimates as
benchmarks
Synergies
Value creation
Specific acquirer traits
Target
Valuation
Range
22
Typical Valuation Methodologies
The following valuation methodologies are commonly used for valuation analysis:
Approach
Description
Comparable Public Companies Analysis
Analysis of similar public companies yields a current valuation and aggregate
reflection of public market value. This value is then discounted to account for
the size, liquidity and comparability to Apollo Video Technology.
Comparable Transactions Analysis
Recent mergers and acquisitions involving businesses similar to Apollo Video
Technology demonstrate how acquirers have valued comparable companies in
change of control transactions.
Discounted Cash Flow Analysis
Cash flows for a standalone entity are projected forward and then discounted
at an appropriate risk-adjusted rate to arrive at an intrinsic value of the
business. Terminal value can be estimated using an implied transaction
multiple or perpetuity.
23
Comparable Public Companies
•
Equity of fundamentally similar, or “comparable” companies tends to be valued on a relatively
consistent basis by the public markets
• This is assumption is not always valid!
•
Identify a universe of public companies which are fundamentally comparable to the target
• Judgment and business sense are key
• Similarity of industry/products/markets, business model, financial profile
•
Analyze key ratios and operating data for each comparable to determine key metrics used by
public markets for valuation
• Understand how comparable companies are valued relative to profitability, growth, etc.
• Based on data acquired in this analysis, determine a range of values for the target
•
The valuation range must be adjusted to reflect the differences of the target from the universe
of comparables
• Private company, size premium, control premium, IPO discount, etc.
24
Comparable Public Companies – Valuation Metrics
Firm Value Metrics
•
Enterprise Value/Revenue
•
Enterprise Value/EBITDA
•
Enterprise Value/EBIT
Equity Value Metrics
• Equity/Net Income
• Price/Earnings
Revenue
•
Profitability
EBITDA
•
•
•
Stability (Risk)
Growth Rate
Size
EBIT
•
•
Capital Intensity
Acquisition History
Net Income
•
•
Capital Structure
Tax Position
25
Comparable Public Companies Analysis Example
($ in millions)
Market
Com pany
Costar Technologies, Inc (OTCPK:CSTI)
Beta*
1.16
Market
Value of Debt Value of Equity
$0.3
$4.1
Enterprise
Value (m )
TTM
Enterprise Value / TTM
$4.3
Rev
$20.3
EBITDA
$0.9
Rev
0.21x
EBITDA
4.78x
Digital Ally Inc. (NasdaqCM:DGLY)
0.94
$2.6
$15.7
$17.9
$18.6
$0.1
0.96x
NA
Iteris, Inc. (AMEX:ITI)
1.31
-
$59.4
$40.3
$61.7
$3.0
0.65x
13.43x
IndigoVision Group plc (AIM:IND)
0.82
-
40.1
$38.8
$48.2
$3.5
0.80x
11.09x
Napco Security Technologies, Inc. (NasdaqGS:NSSC)
1.02
16.8
94.9
$109.9
$69.5
$4.9
1.58x
22.43x
KVH Industries, Inc. (NasdaqGS: (KVHI)
1.31
15.6
223.0
$188.2
$150.3
$15.3
1.25x
12.33x
Verint Systems Inc. (NasdaqGS:VRNT)
2.01
649.5
1,923.8
$2,260.0
$847.7
$157.7
2.67x
14.33x
Petards Group plc (AIM:PEG)
0.26
0.1
2.1
$2.2
$13.8
$0.6
0.16x
3.67x
Harman International Industries, Incorporated (HAR)
2.14
294.4
3,990.0
$3,670.0
$4,210.0
$408.4
0.87x
8.99x
Magal Security Systems Ltd. (Nasdaq: MAGS)
0.75
5.5
57.5
$20.8
$75.6
$5.7
0.27x
3.64x
D-Link Corp. (TSEC:2332)
0.85
44.6
375.7
$298.1
$1,052.3
$27.9
0.28x
10.68x
Median
0.80x
10.89x
Average
0.88x
10.54x
* Levered Beta
26
Low
Comparable Transaction EBITDA Multiple Range
Median
8.88x
% of Median
95%
Comparable
Companies Valuation Example
High
9.35x
9.81x
100%
105%
Implied Enterprise Valuation Before Discount / Premium
$53,034,508
$55,825,798
$58,617,088
Enterprise Value Range
Comparable Transaction Valuation Range
$53,034,508
8.88x
$55,825,798
9.35x
$58,617,088
9.81x
Public Company Comparables Valuation
2013 EBITDA (000's)
$5,972,453
Low
Comparable Trading EBITDA Multiple Range
% of Median
Implied Enterprise Valuation Before Discount / Premium
Liquidity Discount
Size Discount
Control Premium
Enterprise Value Range
Public Company Comparables Valuation Range
Median
High
10.34x
10.89x
11.43x
95%
100%
105%
$61,760,500
$65,011,053
$68,261,606
(10.0%)
(20.0%)
10.0%
(10.0%)
(20.0%)
10.0%
(10.0%)
(20.0%)
10.0%
$48,914,316
8.19x
$51,488,754
8.62x
$54,063,192
9.05x
27
Comparable Transactions
•
Value a company or an asset by comparing reported comparable acquisitions and precedent
transactions
• Comparability of the target on the basis of similar characteristics (business mix, customer
base, distribution channels, industry dynamics, etc.)
• Typical benchmarks include multiples of net income (Equity Value multiples) and multiples of
Revenue, EBITDA and EBIT (Firm Value multiples)
•
Key is also to understand the key traits of the transaction, besides the comparability of the
target
• Friendly vs. hostile
• Auction vs. negotiated deal
• Majority stake (control) vs. minority position
• Merger of equals vs. outright acquisition
• Consideration paid: cash, shares, cash and shares
•
Outright acquisitions potentially involves a “control premium” above comparable trading
company multiples
• Synergy potential to acquirer is key determinant of value
28
Comparable Transactions Analysis Example
Enterprise
Date
Target Com pany
1/7/2013 Visimetrics (UK) Limited
4/24/2012 Transics International NV
(69.49% Stake)
4/19/2011 Conexant Systems, Inc.
Target Description
Acquirer
Value (m )
UK based company specialised in the design, development and
Digital Barriers Plc
manufacture of high-performance digital video recording, storage and
management
systems
for and
CCTV
andof
Video
Surveillance
Belgium
based
developer
seller
on-board
computers, softw are and Tavares NV
fleet management solutions for the transport and logistics sector
Enterprise Value /
Revenue
EBITDA
$12.9
4.55x
NM
$83.3
1.30x
6.50x
US based developer of semiconductor system solutions for imaging,
audio, video surveillance, and embedded modem applications
Golden Gate Capital
$302.2
1.26x
6.69x
Norw ay based manufacturer of camera-based surveillance systems for
marine and oil & gas installations
Cooper Industries Plc
$51.9
1.02x
6.56x
1/28/2011 Optelecom-NKF Inc.
US based supplier of advanced video surveillance solutions
TKH Group NV
$18.1
0.50x
NM
7/29/2010 Trafficmaster Plc
UK based provider of fleet tracking, navigation capabilities, traffic and
journey time data, stolen vehicle tracking and other telematics services
Vector Capital Corporation
$119.3
1.42x
7.25x
2/13/2009 Videolarm Inc.
US based manufacturer and supplier of video surveillance systems
Moog Inc.
$45.0
2.31x
NM
7/31/2008 AllSystem S.p.A. (40%
Stake)
Italy based company that manufactures and markets security and
surveillance systems
Teknel SpA
$139.4
0.98x
13.88x
6/10/2008 Transics International NV
(56.81% Stake)
Belgium based developer and seller of on-board computers, softw are and ING Parcom Private Equity
fleet management solutions for the transport and logistics sector
$215.1
3.16x
10.45x
6/19/2013 Exacq Technologies, Inc.
US based company that develops open architecture and video
management system solutions for security and surveillance applications
$150.2
2.73x
NM
12/30/2010 Hernis Scan Systems AS
Tyco International Ltd
6/16/2011 CarrierWeb LCC (European Netherlands based company offering fleet management and mobile
Activities)
operations management solutions
Transics International NV
$8.5
0.93x
NM
3/14/2011 Essential View ing Systems UK based provider of video solutions to military, law enforcement and
Limited
local authorities
COE Group Plc
$7.8
3.49x
NM
Cooper Safety Ltd.
$18.1
0.50x
NM
GenNx360 Capital Partners
$20.1
0.45x
14.11x
Linear LLC
$11.2
0.79x
NM
11/11/2010 Optelecom-NKF Inc.
US based supplier of advanced video surveillance solutions
10/22/2009 GVI Security Solutions, Inc. Provider video surveillance and security solutions in the United States
5/15/2007 International Electronics Inc US based electronic security systems company manufacturing w ireless
access control and fleet management systems for industrial mobile asset
applications
Median
$
45.0
1.26x
7.25x
Average
$
80.2
1.69x
9.35x
29
Comparable Transactions Valuation Example
Transaction Comparables Valuation
2013 EBITDA (000's)
$5,972,453
Low
Comparable Transaction EBITDA Multiple Range
Median
High
8.88x
9.35x
9.81x
95%
100%
105%
Implied Enterprise Valuation Before Discount / Premium
$53,034,508
$55,825,798
$58,617,088
Enterprise Value Range
Comparable Transaction Valuation Range
$53,034,508
8.88x
$55,825,798
9.35x
$58,617,088
9.81x
% of Median
Public Company Comparables Valuation
2013 EBITDA (000's)
$5,972,453
Low
Comparable Trading EBITDA Multiple Range
% of Median
Implied Enterprise Valuation Before Discount / Premium
Liquidity Discount
Median
High
10.34x
10.89x
11.43x
95%
100%
105%
$61,760,500
$65,011,053
$68,261,606
(10.0%)
(10.0%)
(10.0%)
30
Discounted Cash Flows (DCF)
•
Intrinsic value of a business is measured by its future free cash flows
• Value = Present Value of all future cash flows
•
Free Cash Flow (“FCF”)
• Cash generated by a company’s operations and is available for distribution to the providers of
capital (Debt + Equity holders), net of the cash needed to invest for growth
•
Discount Rate and Weighted Average Cost of Capital (WACC)
• Cash flows are discounted to reflect the time value of money and the uncertainty associated
with the cash flows
•
The DCF analysis is one of many valuation approaches
• Compare results with the valuation derived from other methods
• The DCF analysis is less reliant on external market factors and focuses more heavily on
internal cash flow generation
• Perform sensitivity of value on key assumptions to test results
UNIVERSITY OF WASHINGTON
31
Discounted Cash Flow Summary Example
Enterprise Value
Implied Equity Value
Cumulative Present Value of FCF
$6,114,519
Terminal Value
Terminal Year EBITDA (2018E)
Exit Multiple
Terminal Value
Discount Factor
Present Value of Terminal Value
% of Enterprise Value
Enterprise Value
Less: Total Debt
Less: Preferred Securities
Less: Noncontrolling Interest
Plus: Cash and Cash Equivalents
12,600,000
9.0x
113,400,000
0.43
$48,371,034
88.8%
Enterprise Value
$54,485,553
($10,774,392)
$788,177
Implied Equity Value
$44,499,339
Implied EV/EBITDA
Enterprise Value
12/31/13 EBITDA
$54,485,553
$54,485,553
5,972,453
Implied EV/EBITDA
Enterprise Value
9.1x
Implied Perpetuity Growth Rate
Exit Multiple
17.7%
18.2%
18.7%
19.2%
19.7%
Exit Multiple
8.0x
8.5x
9.0x
9.5x
10.0x
0.1
8.0x
8.5x
9.0x
9.5x
10.0x
$51,096,385
$50,091,462
$49,110,994
$48,154,281
$47,220,647
$53,898,873
$52,835,620
$51,798,274
$50,786,093
$49,798,362
$56,701,361
$55,579,777
$54,485,553
$53,417,906
$52,376,077
$59,503,849
$58,323,935
$57,172,833
$56,049,718
$54,953,791
$62,306,337
$61,068,092
$59,860,113
$58,681,530
$57,531,506
17.7%
18.2%
18.7%
19.2%
19.7%
12.9%
13.4%
13.8%
14.3%
14.8%
13.2%
13.6%
14.1%
14.6%
15.0%
13.4%
13.9%
14.3%
14.8%
15.3%
13.6%
14.1%
14.6%
15.0%
15.5%
13.8%
14.3%
14.8%
15.2%
15.7%
WACC
WACC
#######
32

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