Small business case exercises

Company A has the following data: - $40/share - 50m diluted shares - Debt $600m - Preferred $50m - NCI $80m - Cash $150m - Associates $40m Calculate EV

Company A has the following data: - EV = $5,200m - Debt $1,400m - Preferred $200m - NCI $300m - Cash $600m - Associates $250m - Diluted shares: 80m Compute implied share price

Company A has the following data: - Share price: $50 - Diluted shares: 100m - Debt: $2,000m - Cash: $800m - Minimum operating cash: $200m Compute EV using the excess cash convention

Company A has the following data: - Share price: $8 - Diluted shares: 20m - Debt: $900m - Cash: $50m - Preferred: $0 - NCI: $0 Compute EV

Company A has the following data: - EV: $2,400m - LTM EBITDA: $300m - Peer EV/EBITDA range: 7–9x Compute EV/EBITDA multiple and assess vs. peers

Company A has the following data: - LTM EBITDA: $180m - Peer median EV/EBITDA: 9.5x - Debt: $400m - Cash: $60m - Preferred: $0 - NCI: $0 - Diluted shares: 25m Compute implied share price

Company A has the following data: - Equity Value: $3,000m - Debt: $1,200m - Cash: $400m - Pension PBO: $500m - Pension plan assets: $350m (underfunded by $150m) Compute adjusted EV

An analyst uses EV / Net Income as a valuation multiple. Do you think this multiple makes sense? Why? Which multiple would you use?

Company A has the following data: - Reported EBITDA: $400m - One-off restructuring charge: $50m (expensed) - Litigation settlement: $30m (expensed) - Stock-based compensation: $20m (already added back to reach EBITDA) - Gain on asset sale: $15m (included in EBITDA) Compute adjusted (normalised) EBITDA

Company A has the following data: - ParentCo owns 70% of Company B - ParentCo Equity Value: $4,000m - Debt: $800m - Cash: $300m - NCI (30% of Company B): book value $200m Compute EV

Company A has the following data: - HolderCo owns 30% of AssociateCo, which stake has book value of $400m - HolderCo Equity Value: $2,500m - Debt: $600m - Cash: $200m Compute EV

Company A has the following data: - HolderCo Equity Value: $2,500m - Debt: $600m - Cash: $400m (pre-acquisition) - HolderCo acquires additional 21% of AssociateCo to reach 51% (full consolidation) - Acquisition cost: $300m cash - Post-acquisition NCI (49%) fair value: $650m Compute Pro Forma EV

Company A has the following data: - Equity Value: $1,800m - Straight debt: $500m - Cash: $200m - Convertible bonds: $300m face, conversion price $45 - Current share price: $60 Compute EV under if-converted method

Company A has the following data: - Basic shares: 84m - Share price: $60 - Options: 12m @ $40 strike and 3m @ $75 strike - Convertible bonds: $200m face, conversion price $50 - Debt: $500m - Cash: $150m - Preferred: $0 - NCI: $0 Compute Diluted EV

Company A has the following data: - Diluted shares: 50m - Debt: $400m - Cash: $100m - Share price scenarios: $30, $40, $50 Compute EV at each share price

Company A has the following data: - ControlCo owned 60% of SubCo - ControlCo pre-sale EV: $3,000m - NCI (40% of SubCo): $400m - ControlCo sells 15% stake for $120m cash Describe the directional impact on the EV bridge post-sale

Company A has the following data: - Share price: $5 - Diluted shares: 10m - Debt: $0 - Cash: $200m - No preferred, no NCI Compute EV and explain what a negative result means

Company A has the following data: - Share price: $20 - Diluted shares: 60m - Acquisition premium: 30% - Debt: $500m - Cash: $150m - LTM EBITDA: $200m Compute offer EV and implied EV/EBITDA multiple

Company A has the following data: - Acquisition EV: $3,500m - Financing: $2,000m senior secured debt + $500m subordinated notes + $1,000m equity - Cash at close: $50m (minimum operating, retained) - Year 5 exit: debt paid down to $800m total; Cash $400m; EBITDA $500m; Exit multiple 8x Compute exit Equity Value and MoM return

Company A has the following data: - Acquirer buys 70% of TargetCo for $700m cash - TargetCo: Debt $0, Cash $0 Describe the impact on the acquirer’s EV bridge post-close

Company A has the following data: - BuyerCo acquires 100% of SellerCo for $1,200m (60% stock / 40% cash), issuing 24m new shares - SellerCo: Debt $300m, Cash $100m, EBITDA $150m Walk through the impact on BuyerCo’s EV bridge and compute implied entry EV/EBITDA

Company A has the following data: - HolderCo has a 30% stake in AssocCo (book value $200m, FV $350m) - HolderCo buys additional 25% for $300m cash Describe the EV bridge change

Company A has the following data: - SellerCo owned 80% of DivSubCo and NCI of 20% = $150m - SellerCo sells 35% for $400m cash Describe the EV bridge impact of the divestiture

Company A has the following data: - Entry EV: $2,000m (40% sponsor funding) - Entry Multiple: 10.0x - Year 5: EBITDA = $320m; Debt paid down to $500m; Cash = $200m; Exit multiple = 9x 1. Compute exit equity value, MoM return 2. Attribute value creation to EBITDA growth, multiple expansion, and deleveraging