Investment Banking Pitchbook Template

1 4
Transaction Opportunities
Table of Company Overview
4. Company Overview 20. Strategic Review and Opportunities
Contents 5. Business Model 21. Recommendation 1
6. Operating Forecast 22. Recommendation 2
7. Shareholder Ownership 23. Recommendation 3
8. Liquidity Analysis
2 5
Industry Overview Team Overview
10. Competitive Environment 25. Investment Banking Team
11. Key Industry Trends 26. Deal Tombstones
12. Corporate Finance Activity
3 A
Valuation Appendices
14. Historical Share Price Performance
15. Valuation Overview Including Football Field
16. Valuation Analysis
17. Comparables Overview
18. Precedents Overview

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Company Overview
 Company Overview
Company Highlights Valuation & Share Performance
• Delfi Limited, formerly Petra Foods Limited, is engaged in the manufacturing, marketing and distribution of
Key Valuation Statistics ($mm)
chocolate, chocolate confectionery, consumer products and investment holding.

• Market: Its main market is Indonesia, accounting for 71.5% of revenue in 2019. Other prominent market Enterprise Value $320.9 Revenue (FY18e) $968
includes Malaysia, Philippines, Singapore. In addition, its chocolate confectionery products are sold in over Market Cap $336.4 EBITDA* $59.6
10 other countries, including Thailand, Brunei, India, South Korea and Vietnam. P/E* 12.25x EBITDA Margin* 12.6%

• Production: Its confectionery business is supported by approximately two manufacturing facilities, one in P/B* 2.00x EV/EBITDA* 5.46x
Indonesia and the other in the Philippines. Cash $68.7 Total Debt $153.8
*Data is of 2019. All remaining data is TTM
• Strategy: Premiumisation to improve margin, and refresh brand image to attract young customers.
Share Price Current: $0.51 52 Week High/Low: $0.78 / $0.41
• Shares: The shares are listed on the Singaporean Stock Exchange and it went public in 2004. Current share
price is US$0.49 3.5 4000
Industry Data Average Revenue Mix % Gross ($mm)
3
Chocolate and Confectionery Own Brands 65.9 308.2 2.5 3000

Agency Brands 34.1 164.2 2

EV/EBITDA 14.5 2000
1.5
Total 100 472.4
EV/Revenue 2.21 1 1000
Indonesia 71.5 377.4 0.5
P/E 20.28 0 0
Malaysia 17.2 81.1
Food Processing Philippines 9.2 43.1
EV/EBITDA 13.72 Other countries 1.6 7.3

EV/Revenue 1.72 Singapore 0.5 2.5

Total 100 472.4 Delfi STI

P/E 41.68

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 Operating
Competitive Forecast
Advantages
Revenue Drivers

Dominant position in Indonesia

• Takes up to 45% of chocolate market share in Indonesia
• The 2 iconic brands - SilverQueen and Ceres - had been around for more than 60 years ago, with a long-standing history that makes it the first taste of chocolate for almost 3-4
generations of Indonesians.

Excellent distribution models

• Modern trade channels (convenience stores, supermarket, hypermarket) penetration is 100%.
• General trade channels (mom-and-pop/warung stores), which are are not only fragmented but sees tiers of distribution structure that stack to 3-4 layers and make up ~50-60% of
Indonesian packaged goods sales. These relationships have been established for more than 50 years and largely exclusive to the company. Thus, Delfi is one of few companies to be able
to place the products on every shelf throughout archipelago.

Indonesia's chocolate market General Trade Modern Trade

Market share by volume - In percent Ease of access More difficult Easier

100% Development Rural Urban

Other
90%
Garuda Food Types of Products Value Premium
80%
70% Ferrero Consumer Purchasing
Lower Lower
60% Mondelez International Power
50% Mayora Indah Gross Profit Margin Higher Lower
40%
Delfi
30% Distribution Cost Higher Lower
20%
Operating Margin Same
10%
0% Main competitors Mayora Mondelez, Hershey
2015 2016 2017 2018 2019
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 Shareholder Ownership
Ownership Analysis
• (What is the breakdown between institutional/insider/retail ownership? What does this imply for float turnover? What is the float turnover?)
• (Who are the top shareholders? How has this ownership dynamic changed over time? What are the key takeaways from this dynamic? What kinds of opportunities
does this create? How has this activity impacted valuation?)

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 Liquidity Analysis
(What is the overarching theme? If your client takes away only one sentence from this slide, what should it be?)
Capital Adequacy
• Capital intensity diminishes over time (Why is this happening? Is it signaling a strategic shift? What does this mean for liquidity? What is the split between growth and
maintenance capex?)
• Cash position improves over time (Why is this happening? How is this beneficial? What kinds of opportunities can Company A pursue with all this dry powder?)
• (What are some potential pitfalls Company A might run into? How can these be avoided?)
̶ (Where is capex expected to spike? Why? Are debt maturities evenly spaced out, or are they all within a short duration of each other? What does this mean?)
(in millions of U.S. dollars) 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Historical & Forecasted PP&E Capex 50.0 50.0 60.0 80.0 100.0 95.0 90.0 85.0 80.0 75.0 70.0 70.0
Historical & Forecasted Intangibles Capex 200.0 150.0 130.0 110.0 100.0 90.0 80.0 75.0 75.0 75.0 75.0 75.0
Debt Repayment - - 100.0 50.0 - 35.0 15.0 50.0 - 100.0 - 50.0

Outs.
Debt Facility Avail. ($mm) Maturity Interest rate Notes
($mm)

Convertible
Senior
Unsecured
Notes

Revolving
Credit Facility

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Industry Overview
 Competitive Environment
Company EV/ LTM Sales EV/ LTM EBITDA Strategy Structure
** What are the
(LOGO A) relevant (P/NAV? P/CF? • (Any recent developments? Analyst consensus / sentiment?
• (What industry verticals do they operate in? What are their business
** .PNG format valuation EV/EBITDAR? Overarching themes? Stated growth strategies? Are they direct
segments? What’s the revenue split?)
** metrics for etc.) competitors?)
comps? **

• (Any recent developments? Analyst consensus / sentiment?

• (What industry verticals do they operate in? What are their business
(LOGO B) Overarching themes? Stated growth strategies? Are they direct
segments? What’s the revenue split?)
competitors?)

• (Any recent developments? Analyst consensus / sentiment?

• (What industry verticals do they operate in? What are their business
(LOGO C) Overarching themes? Stated growth strategies? Are they direct
segments? What’s the revenue split?)
competitors?)

• (Any recent developments? Analyst consensus / sentiment?

• (What industry verticals do they operate in? What are their business
(LOGO D) Overarching themes? Stated growth strategies? Are they direct
segments? What’s the revenue split?)
competitors?)

• (Any recent developments? Analyst consensus / sentiment?

• (What industry verticals do they operate in? What are their business
(LOGO E) Overarching themes? Stated growth strategies? Are they direct
segments? What’s the revenue split?)
competitors?)

• (Any recent developments? Analyst consensus / sentiment?

• (What industry verticals do they operate in? What are their business
(LOGO F) Overarching themes? Stated growth strategies? Are they direct
segments? What’s the revenue split?)
competitors?)

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 Key Industry Trends
Industry Overview Industry Spending
Industry Revenue Breakdown by Major Segment (2016)

Growing Vertical Revenue

CAGR
New Vertical Revenue +30.7%
Stagnating Vertical Revenue

Declining Vertical Revenue

Key Industry Averages

Total Debt/EBITDA

Total Debt/EV

EBITDA margin

EV/EBITDA

P/E Ratio
Segment A

Market share of top 5 players 7%

Africa Segment B
24% 8%
Canada
Global Industry 29%
Segment E
31%

Total revenues

Forecasted 5-year revenue growth Segment C

22%

Revenue Profile Asia/Pacific

18%
United States
(What are the secular trends in this industry? What is the industry outlook? What do the financial metrics 16%

imply?) Europe
5% Latin America Segment D
32%
8%

(What are the aggregate totals? Where have we witnessed deviant trends? Where have we witnessed
convergent trends?) Geographic Revenue Breakdown Segmented Revenue Breakdown

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 Corporate Finance Activity
Competitor A acquires X
Competitor A makes hostile bid for Company A
Competitor B divests X
Competitor C buys X
Competitor D IPO
Major product rollout by Company A
Competitor D completes follow-on offering
Competitor E acquires X
Competitor A acquires Competitor B
Competitor C files Chapter 11

2004 2005 2006 2007 2008 2009 2010

2011 2012 2013 2014 2015 2016 2017

Competitor G IPO
Competitor A acquires Competitor F
Competitor A divests X
Competitor G pulls IPO bid
Competitor D and Company A initiate joint venture
Competitor D 2:1 stock split
Company A initiates NCIB
Competitor C raises $1bn in Sr. Unsecured Notes
Competitor F IPO
Competitor C and Competitor D merge in a merger of equals

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Valuation
 Historical Share Price Performance
Key Events & Share Price Drivers

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 DCF Valuation
Assumptions Key Calculations

• Revenue: Revenue growth is driven by (1) industry/market performance, and (2)
company performance in recent years. Expected sales for the FY20 are revised to went
down by 10%, while revenue growth in FY21 will be set at a moderately 5% level. From
2022-2025, growth rate to equal growth rate of 7%.
• Operating margin: Target operating margin is driven by (1) industry/market
performance, and (2) company performance in recent years. Years taken to converge
to that level is set as 5 years which is industry average. FY21 operating margin will be
kept at the low level of 8% to reflect higher administration cost due to implementation
of health safety measure and decrease of productivity.
• Reinvestment: Sales to capital ratio of industry 1.66
• Transitional Phase: Growth phase for Delfi is from FY21-FY25. From then, growth rate
is expected to decline gradually from 2025 to 2030. From 2030 onwards, Delfi will
enter terminal phase. (According to studies in growth phase for US companies in the
last 50 years, most firms’s growth phase cannot exceed 5 years of high growth)
• Terminal Growth Rate: The terminal growth rate is expected to be 3% considered (1)
Indonesia GDP long term growth rate of 2.6% (2) targeted long-term Indonesia
inflation of 3.4% (OECD)
• Terminal cost of capital: In stable growth, assume that Delfi will have a cost of capital
similar to that of typical mature companies (Riskfree rate + 4.5%)
• Risk Free Rate: As reporting currency for Delfi is USD, the risk free rate being used is
US 10-year Treasure Rate, which on the date of calculation (October 2nd 2020) is 0.7%.
As this risk free rate is historically low due to COVID-19 situation, the risk free rate in
terminal will be revised to 2% to reflect normal risk-free rate of US 10-year Treasury
Bond.
Reinvestment:
• Adjusted for COVID-19 situation, assume that reinvestment for FY2020 is 0 as the
company will need to focus on operation first.
• Reinvestmentt = (Revenuet – Revenuet-1 )/Sales to Cap ratio – Global industry
(Damodaran updated Sep 2020)
Cost of capital = rD x (1-t) x (D/D+E) + rE x (E/D+E)
• rD = risk-free rate + risk premium global small market cap (Damodaran updated Sep
2020)
• t: marginal tax rate
• rE = risk-free rate + β x Equity Risk Premium (ERP)
• β: Single business Global Beta (Damodaran updated Sep 2020)
• ERP: Weighted average ERP based on operating country (Damodaran updated Sep
2020)
Cumulated discount factor = Cumulated discount factort-1 x (1+(1+ cost of capital))
Terminal value = Terminal CF / (Terminal cost of cap – Terminal growth rate)
PV of terminal value = Terminal value x Cumulated discount factor
Value of operating equity = Value of operating assets – Debt – Minority Interest + Cash
and Cash equivalent assets
Base year: FY2019

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 Valuation Analysis
Category Assumptions Comments
2020 2021-2025
• Revenue growth is driven by (1) industry/market performance, and (2) company performance in recent years.
EBITDA Margin • Expected sales for the FY20 are revised to went down by 10%, while revenue growth in FY21 will be set at a moderately 5% level. From 2022-
2025, growth rate to equal growth rate of 7%.

Cost of Revenues

Marketing & Sales

Technology &
Development

Operating Metric A

Operating Metric
B

Purchases of PP&E

Purchases of
Intangibles

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 DCF Valuation
 
Base year6 1 2 3 4 5 6 7 8 9 10 Terminal year

Revenue growth rate   -10.00% 5.00% 7.00% 7.00% 7.00% 6.20% 5.40% 4.60% 3.80% 3.00% 3.00%

Revenues 471,622 424,460 445,683 476,881 510,262 545,981 579,831 611,142 639,255 663,547 683,453 703,956

EBIT (Operating) margin 9.24% 8.50% 9.30% 9.70% 10.10% 10.50% 10.50% 10.50% 10.50% 10.50% 10.50% 10.50%

EBIT (Operating income) 43,577 36,079 41,448 46,257 51,536 57,328 60,882 64,170 67,122 69,672 71,763 73,915

Tax rate 35.25% 35.25% 35.25% 35.25% 35.25% 35.25% 31.60% 27.95% 24.30% 20.65% 17.00% 17.00%

EBIT(1-t) 28,216 23,361 26,837 29,951 33,369 37,120 41,643 46,234 50,811 55,285 59,563 61,350

Reinvestment1   - 12,803 18,821 20,138 21,548 20,421 18,889 16,959 14,654 12,009 26,255

FCFF   23,361 14,034 11,131 13,231 15,572 21,223 27,346 33,852 40,631 47,554 35,095

Cost of capital2   7.31% 7.31% 7.31% 7.31% 7.31% 7.25% 7.19% 7.13% 7.07% 7.01% 7.01%

Cumulated discount factor3   0.9319 0.8684 0.8093 0.7542 0.7028 0.6553 0.6113 0.5707 0.5330 0.4981  

PV (FCFF)   21,770 12,188 9,008 9,979 10,977 13,907 16,717 19,318 21,655 23,685  

PV (CF next 10 years) 159,171                      

PV (Terminal value)4 435,890                      

Value of operating asset 595,061                      

Value of equity5 477,648                      

Number of shares 611,157                      

Shares Value 0.78                      

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 DCF Valuation
Assumptions Valuation Football Field
Valuation Football Field (Company A)
• Revenue: Revenue growth is driven by (1) industry/market performance, and (2)
company performance in recent years. Expected sales for the FY20 are revised to
went down by 10%, while revenue growth in FY21 will be set at a moderately 5% 52-Week Trading Range $22.68 $40.54
level.
• Operating margin: Target operating margin is driven by (1) industry/market Current Analyst Forecast $45.00 $48.00
performance, and (2) company performance in recent years. Years taken to converge
to that level is set as 5 years which is industry average. FY21 operating margin will be Comparables Valuation $31.81 $63.90
kept at the low level of 8% to reflect higher administration cost due to
implementation of health safety measure and decrease of productivity.
Precedent Transactions Valuation $44.81 $65.90
• Reinvestment: Sales to capital ratio of industry 1.66
• Transitional Phase: Growth phase for Delfi is from FY21-FY25. From then, growth rate
is expected to decline gradually from 2025 to 2030. From 2030 onwards, Delfi will DCF Valuation
$36.81 $55.90
enter terminal phase. (According to studies in growth phase for US companies in the
0 10 20 30 40 50 60 70 80
last 50 years, most firms’s growth phase cannot exceed 5 years of high growth)
• Terminal Growth Rate: The terminal growth rate is expected to be 3% considered (1) Share Price

Indonesia GDP long term growth rate of 2.6% (2) targeted long-term Indonesia ’18e Revenues ‘18e EBITDA ‘18e EBITDA
Broker Estimates Target Prices ($)
inflation of 3.4% (OECD) ($mm) ($mm) Margin (%)
• Terminal cost of capital: In stable growth, assume that Delfi will have a cost of capital RBC (10/16/2017) $46.00
similar to that of typical mature companies (Riskfree rate + 4.5%)
• Risk Free Rate: As reporting currency for Delfi is USD, the risk free rate being used is J.P. Morgan
$45.00
US 10-year Treasure Rate, which on the date of calculation (October 2nd 2020) is (10/17/2017)
Valuation
0.7%. AsMetrics Intrinsiclow due to COVID-19
this risk free rate is historically Tradingsituation, thePrecedents
risk free BMO (10/20/2017) $47.50
rate in terminal will be revised to 2% to reflect normal risk-free rate of US 10-year
EV/EBITDA
Treasury Bond. Morgan Stanley
EV/Revenue $47.25
(10/21/2017)
P/E
CIBC (10/27/2017) $48.00

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 Comparables Analysis
Market Valuation (Mil) LFY Profitability Margins (%) Growth Rates
Primary Current Share
Company EPS (TTM)
Exchange price Market Cap Enterprise Value Gross Profit EBITDA EBIT NI Sales EBITDA EPS

Delfi SG $ 0.49 $ 0.0400 336.44 320.97 36.19% 12.64% 10.02% 5.98% 10.46% 16.18% 35.29%
Tier I: Indonesian Chocolate, Food & Beverage Companies
Mayora ID $ 0.17 $ 0.0065 3,668.68 3,776.60 27.25% 11.09% 9.31% 6.84% 20.75% 20.71% 17.31%
Garudafood ID $ 0.02 $ 0.0030 617.94 686.84 29.97% 9.35% 8.37% 1.94% 4.81% -4.64% -2.56%
Indofood CBP ID $ 0.69 $ 0.0340 7,986.13 7,839.00 33.10% 18.28% 17.97% 11.91% 10.59% 97.34% 7.41%
Tier II: Regional Chocolate and Confectionery Companies
Crown Confectionery KR $ 7.52 $ 1.29 92.69 165.56 35.27% 9.95% 6.86% 4.90% -0.49% 28.14% 38.89%
Nestle Malaysia MY $ 33.87 $ 0.59 7,269.00 7,337.00 37.58% 19.64% 16.61% 12.19% -2.85% -2.87% 1.47%
Universal Robina Corp PH $ 2.82 $ 0.10 5,885.00 6,648.39 30.04% 15.19% 9.74% 7.28% 6.84% 6.79% 6.98%
Ezaki Glico JP $ 44.41 $ 1.75 2,917.14 2,308.74 47.02% 9.21% 5.30% 4.18% 8.72% 4.48% -22.37%
Tier II: Global Chocolate and Confectionery Companies
Barry Callebaut AG CH $ 2,284.64 $ 75.73 11,840.00 13,700.00 16.26% 10.56% 8.14% 5.07% 3.36% 4.04% 4.11%
Meiji Co. JP $ 73.29 $ 4.32 12,160.00 13,300.00 36.91% 11.54% 7.86% 5.37% 1.95% 5.38% 8.66%
Mondelez International US $ 57.30 $ 2.33 81,530.00 99,710.00 39.97% 19.24% 15.20% 14.96% -0.27% 20.97% 16.23%
Hershey Co/The US $ 145.63 $ 5.11 29,910.00 33,820.00 45.36% 22.84% 19.20% 14.40% 2.49% -1.51% -2.15%
Lindt & Sprungli AG CH $93,342.80 $2,033.20 20,771.75 21,383.97 45.03% 20.96% 15.07% 11.30% 4.63% 15.78% 5.76%

Mean           35.38% 14.65% 11.51% 8.18% 5.46% 16.21% 8.85%

Median           36.19% 12.64% 9.74% 6.84% 4.63% 6.79% 6.98%

High           47.02% 22.84% 19.20% 14.96% 20.75% 97.34% 38.89%

Low           16.26% 9.21% 5.30% 1.94% -2.85% -4.64% -22.37%

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 Comparables Analysis
Return on Investment EBITDA P/E
Primary Current Share
Company EPS (TTM)
Exchange price ROIC ROE ROA Dividend yield (TTM) Current FY19 Current FY19

Delfi SG $ 0.49 $ 0.0400 9.44% 10.65% 6.30% 4.78% 5.46 7.82 12.25 17.87
Tier I: Indonesian Chocolate, Food & Beverage Companies
Mayora ID $ 0.17 $ 0.0065 15.64% 21.45% 11.76% 1.23% 14.50 12.19 25.58 26.62
Garudafood ID $ 0.02 $ 0.0030 10.13% 13.42% 6.33% 2.27% 15.38 13.68 28.27 33.68
Indofood CBP ID $ 0.69 $ 0.0340 18.83% 21.48% 13.80% 2.00% 12.63 17.09 20.06 26.17
Tier II: Regional Chocolate and Confectionery Companies
Crown Confectionery KR $ 7.52 $ 1.29 9.89% 14.02% 5.69% 2.93% 4.98 5.17 5.83 6.10
Nestle Malaysia MY $ 33.87 $ 0.59 70.97% 92.67% 23.58% 1.08% 32.33 31.82 57.41 51.84
Universal Robina Corp PH $ 2.82 $ 0.10 7.89% 11.56% 6.20% 0.86% 15.43 19.80 29.59 34.04
Ezaki Glico JP $ 44.41 $ 1.75 4.20% 4.96% 3.05% 1.26% 8.04 8.38 25.38 29.68
Tier II: Global Chocolate and Confectionery Companies
Barry Callebaut AG CH $ 2,284.64 $ 75.73 8.55% 15.91% 5.78% 1.87% 16.73 15.95 30.17 31.81
Meiji Co. JP $ 73.29 $ 4.32 7.48% 9.81% 5.20% 2.03% 11.81 10.63 16.97 19.32
Mondelez International US $ 57.30 $ 2.33 8.52% 14.68% 6.06% 1.98% 22.63 19.34 24.59 20.71
Hershey Co/The US $ 145.63 $ 5.11 18.27% 62.56% 12.84% 19.29% 19.53 18.89 28.50 24.25
Lindt & Sprungli AG CH $93,342.80 $2,033.20 8.36% 10.63% 6.10% 1.26% 22.64 23.02 45.91 42.33

Mean       15.24% 23.37% 8.67% 3.30% 15.55 15.68 26.96 28.03

Median       9.44% 14.02% 6.20% 1.98% 15.38 15.95 25.58 26.62

High       70.97% 92.67% 23.58% 19.29% 32.33 31.82 57.41 51.84

Low       4.20% 4.96% 3.05% 0.86% 4.98 5.17 5.83 6.10

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 Precedents Analysis
Precedent Transaction Rationale
• (Which transactions did you select to value Company A? Why? What similarities exist between the target and Company A?)
• (In what ways would Company A command a higher TV if they were put in the position of a target? What competitive advantages does Company A have
over past transaction targets?)
• (How are the industry verticals classified relative to Company A and its strategy? Is there an identifiable trend over time regarding industry multiples? Are
they contracting or expanding? Why? What’s the secular driver within the industry?)

Target Buyer Transaction LTM EV/LTM

Company Type Company Type EV Date Year Impl. EV Revenue EBITDA Revenue EBITDA

Company J New Company S Declining $82,730 July 26, 2017 2017 $7,802 $3,472 $1,604 2.2x 4.9x
Company K Growing Company T Stagnating $38,040 August 15, 2016 2016 $2,207 $1,666 $393 1.3x 5.6x
Company L Declining Company U Stagnating $74,220 March 27, 2015 2015 $56,913 $28,506 $7,916 2.0x 7.2x
Company M Declining Company V Stagnating $53,060 January 8, 2013 2013 $1,077 $709 $259 1.5x 4.2x
Company N Stagnating Company W Declining $36,520 July 1, 2010 2010 $5,098 $4,682 $2,580 1.1x 2.0x
Company O Growing Company X Declining $117,250 April 4, 2006 2006 $880 $1,641 $438 0.5x 2.0x
Company P Growing Company Y Growing $30,490 March 2, 2006 2006 $1,658 $82 $22 20.2x 75.3x
Company Q New Company Z Stagnating $79,150 June 26, 2004 2004 $1,938 $610 $120 3.2x 16.2x
Company R Growing Company AA Growing $80,760 October 1, 2002 2002 $2,037 $720 $256 2.8x 8.0x

Average 3.9x 13.9x

Company A 3.5x 9.5x

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Transaction Opportunities
 Strategic Review and Opportunities
M&A Opportunities

Key Transaction Theme 1: (In short, why should this theme be the focal point for Company A’s VALUATION OVERVIEW
management team?) Industry Vertical A:
• (Why will this be the game-changing opportunity for Company A? Why is the timing ideal right • EV/EBITDA: 0.0x – 0.0x
now?)
• EV/Revenue: 0.0x – 0.0x
Reco 1 Key Transaction Theme 2: • P/E: 0.0x – 0.0x

Industry Vertical B:
• EV/EBITDA: 0.0x – 0.0x
Key Transaction Theme 1: • EV/Revenue: 0.0x – 0.0x
• P/E: 0.0x – 0.0x
• (What observations can you make about the range of
multiples? What insights can be gained from the
Reco 2 differences? What is the industry trending towards?)
Company A:
Key Transaction Theme 2:
• EV/EBITDA: 2.9x
• EV/Revenue: 3.5x
• P/E: 51.8x
• (Where does Company A stand in terms of relative
Key Transaction Theme:
industry valuation? Why is it currently trading at a
premium/discount?)
Reco 3
All multiples are NTM

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 Recommendation 1
Strategic Rationale Target Revenue & EBITDA Forecast
• (Ideally, you will want to show the accretion/dilution at different control premiums,
showcase potential synergies, and demonstrate a multiple re-rating in the market
following the acquisition)
• (How does this target company fit in with Company A’s strategy? What are some of the
intangible elements like customer relationships or human capital talent that Company
A will receive in the acquisition?)
• (Why now? Timing considerations?)

Prime Target Company Overview Valuation Multiples

• Prime Target
Multiple 2018E 2019E 2020E
P/E 60.7x 64.3x 54.8x
EV/Sales 2.5x 1.1x 2.1x
EV/EBITDA 9.9x 8.9x 6.2x
EV/EBIT 10.9x 9.9x 7.2x

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Company Overview Industry Overview Valuation Transaction Opportunities Team Overview

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 Recommendation: Content/Production Focus
Strategic Rationale Target A Revenue & EBITDA
• (When pitching a transaction opportunity to company management, it is best to give
your top recommendation first as their time is valuable. If they are not interested in
the first transaction, the next two recommendations are there to serve as a backup.)
• (There should still be strong strategic rationale to pursue these transactions, what are
they? Are there diversification opportunities available? Scaling opportunities? Etc.)

Acquisition Opportunities Target A Revenue & EBITDA Forecast

• Target A
Multiple 2018E 2019E 2020E
P/E 60.7x 64.3x 54.8x
EV/Sales 2.5x 1.1x 2.1x
EV/EBITDA 9.9x 8.9x 6.2x
• Target B
EV/EBIT 10.9x 9.9x 7.2x

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 Recommendation: Content/Production Focus
Strategic Rationale Target C Revenue & EBITDA
• (When pitching a transaction opportunity to company management, it is best to give
your top recommendation first as their time is valuable. If they are not interested in
the first transaction, the next two recommendations are there to serve as a backup.)
• (There should still be strong strategic rationale to pursue these transactions, what are
they? Are there diversification opportunities available? Scaling opportunities? Etc.)

Acquisition Opportunities Target C Revenue & EBITDA Forecast

• Target C
Multiple 2018E 2019E 2020E
P/E 60.7x 64.3x 54.8x
EV/Sales 2.5x 1.1x 2.1x
EV/EBITDA 9.9x 8.9x 6.2x
• Target D
EV/EBIT 10.9x 9.9x 7.2x

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Company Overview Industry Overview Valuation Transaction Opportunities Team Overview

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Team Overview
 Investment Banking Team
Precedent Transaction Rationale
 “Our team is composed of a comprehensive roster of experienced and knowledgeable seniors and juniors to execute this transaction”
 (For sell-side pitchbooks: What previous transaction experience does the team have? What is their background and education? How many years experience in the industry? What previous relevant
positions have the directors held?)
 (For buy-side pitchbooks: How extensive are the personnel resources of the bank? What divisions of the bank can contribute to what element of the transaction? How can I contact the different
individuals listed?)

M&A Group Equity Capital Markets Debt Capital Markets

First Last Name – Position, Head of, Group First Last Name – Position, Head of, Group First Last Name – Position, Head of, Group
Phone Number Phone Number Phone Number
Email Address Email Address Email Address

Industry Group Team Leaders Leveraged Finance

First Last Name – Position, Head of, Group First Last Name – Position, Head of, Group First Last Name – Position, Head of, Group
Phone Number Phone Number Phone Number
Email Address Email Address Email Address

Industry Group Satellite Office Private Equity

First Last Name – Position, Head of, Group First Last Name – Position, Head of, Group First Last Name – Position, Head of, Group
Phone Number Phone Number Phone Number
Email Address Email Address Email Address

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Company Overview Industry Overview Valuation Transaction Opportunities Team Overview

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 Deal Tombstones
Notable Past Transactions

Company Name Company Name Company Name Company Name

Logo: Logo: Logo: Logo:

.PNG format .PNG format .PNG format .PNG format

$ Deal Amount $ Deal Amount $ Deal Amount $ Deal Amount

Deal Unit Size Deal Unit Size Deal Unit Size Deal Unit Size
Deal Type Deal Type Deal Type Deal Type

Deal Position Deal Position Deal Position Deal Position

DATE DATE DATE DATE

Company Name Company Name Company Name Company Name

Logo: Logo: Logo: Logo:

.PNG format .PNG format .PNG format .PNG format

$ Deal Amount $ Deal Amount $ Deal Amount $ Deal Amount

Deal Unit Size Deal Unit Size Deal Unit Size Deal Unit Size
Deal Type Deal Type Deal Type Deal Type

Deal Position Deal Position Deal Position Deal Position

DATE DATE DATE DATE

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Company Overview Industry Overview Valuation Transaction Opportunities Team Overview

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Appendices
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