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  • Lifefuels Risk Finance

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    Admir Meskovic
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    This document summarizes the financial projections for three scenarios - favorable, normal, and adverse - for a potential acquisition over the period of 2021-2025. It shows projections for revenue, costs, and profits under each scenario. Key metrics like net present value, internal rate of return, and payback period are provided. Finally, it outlines the next steps of completing due diligence, negotiating the acquisition, and integrating the company while expanding to new markets.

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    This document summarizes the financial projections for three scenarios - favorable, normal, and adverse - for a potential acquisition over the period of 2021-2025. It shows projections for revenue, costs, and profits under each scenario. Key metrics like net present value, internal rate of return, and payback period are provided. Finally, it outlines the next steps of completing due diligence, negotiating the acquisition, and integrating the company while expanding to new markets.

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    23 views6 pages

    Lifefuels Risk Finance

    Uploaded by

    Admir Meskovic
    This document summarizes the financial projections for three scenarios - favorable, normal, and adverse - for a potential acquisition over the period of 2021-2025. It shows projections for revenue, costs, and profits under each scenario. Key metrics like net present value, internal rate of return, and payback period are provided. Finally, it outlines the next steps of completing due diligence, negotiating the acquisition, and integrating the company while expanding to new markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 6

    Low consumer awareness

    High competition

    Cultural transition
    All important
    risks can be Environmental sustainability

    mitigated Demand misjudgement

    Financial risks

    Brand reputation
    FAVORABLE
    70% retention rate Scenarios
    30% higher market share

    Market share
    Market 2021 2022 2023 2024 2025
    NORMAL
    Market share USA
    50% retention rate China
    0.38% 0.45%
    0.30%
    0.54%
    0.36%
    0.65%
    0.43%
    0.78%
    0.52%
    Japan 0.45% 0.54% 0.65% 0.78%
    Other 0.38% 0.45% 0.54% 0.65%
    ADVERSE
    30% retention rate
    30% lower market share
    Scenario Figures per year (mil. USD)
    Favorable 2021 2022 2023 2024 2025
    Revenue 48.33 238.37 361.24 486.12 620.19
    Cost 36.73 181.16 274.54 369.45 471.35
    Profit 11.60 57.21 86.70 116.67 148.85
    Financial
    Normal 2021 2022 2023 2024 2025 projections
    Revenue 36.25 174.79 248.05 316.80 389.74
    Cost 27.55 132.84 188.52 240.77 296.20 Total 5 year projection
    2,000.00
    Profit 8.70 41.95 59.53 76.03 93.54 1,800.00
    1,600.00
    1,400.00
    1,200.00
    Adverse 2021 2022 2023 2024 2025 1,000.00
    800.00
    Revenue 24.17 113.88 151.17 185.76 224.22 600.00
    400.00
    Cost 27.55 132.84 188.52 240.77 296.20 200.00
    0.00
    Profit 5.80 27.33 36.28 44.58 53.81 Favorable Normal Adverse

    Revenue Cost Profit


    Financial outlook
    • Max acquisition price is USD191.4 mil – required by Keurig Dr Pepper
    Inc

    Scenario Favorable Normal Adverse


    Net present value USD466.65 m USD226.00 m USD43.96 m
    Internal rate of 35.04% 22.66% 9.23%
    return
    Payback period 3.53 y 4.33 y 5.30 y
    Full due diligence

    Conclusion of negotiations with the current owners

    Plan of future Acquisition and company’s inclusion into P&G Health

    steps care BU

    2021: USA market expansion

    2022 and onward: other markets worldwide

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