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    Lady M

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    Rishikesh Nair
    This document summarizes financial information for Lady M (LM) for 2014-2019, including revenue, costs, EBIT, taxes, and cash flows. It calculates the current enterprise value of LM China at $17,738 assuming a 0% retention by LM. With a 25% retention, the value is $13,304 and LM's stake in the conglomerate is reduced to 16.43%. The document also outlines assumptions around valuing LM after an investment is accepted.

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    Lady M

    Uploaded by

    Rishikesh Nair
    47 views2 pages
    This document summarizes financial information for Lady M (LM) for 2014-2019, including revenue, costs, EBIT, taxes, and cash flows. It calculates the current enterprise value of LM China at $17,738 assuming a 0% retention by LM. With a 25% retention, the value is $13,304 and LM's stake in the conglomerate is reduced to 16.43%. The document also outlines assumptions around valuing LM after an investment is accepted.

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    Business Valuation

    Original Title

    LadyM

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    This document summarizes financial information for Lady M (LM) for 2014-2019, including revenue, costs, EBIT, taxes, and cash flows. It calculates the current enterprise value of LM China at $17,738 assuming a 0% retention by LM. With a 25% retention, the value is $13,304 and LM's stake in the conglomerate is reduced to 16.43%. The document also outlines assumptions around valuing LM after an investment is accepted.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    47 views2 pages

    Lady M

    Uploaded by

    Rishikesh Nair
    This document summarizes financial information for Lady M (LM) for 2014-2019, including revenue, costs, EBIT, taxes, and cash flows. It calculates the current enterprise value of LM China at $17,738 assuming a 0% retention by LM. With a 25% retention, the value is $13,304 and LM's stake in the conglomerate is reduced to 16.43%. The document also outlines assumptions around valuing LM after an investment is accepted.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    All figures are in thousands

    Particulars 2014 2015


    Revenue 11000 13200
    CGS 2398 2878
    SG&A 6380 7524
    R&D 0 13
    Depriciation and Amortization 25 800
    EBIT 2197 1985
    Less taxes 769 695
    EBIAT 1428 1290
    Add: Depriciation & Amortization 25 800
    Subtract increase in Capex/ Add decrease 33 1000
    Subtract increase in Working capital/ Add decrease 68 42
    FCFF 1352 1049
    Terminal Value
    PVIF @12% WACC 0.893
    PVCF 936
    Enterprise Value of Lady M 53215

    Taking value from Perpetuity


    Current Enterprise Vale of Lady M 53215 Growth
    Investment Amount 10000
    EV of Lady M after accepting Investment 63215
    Assuming 1/3rd of the current
    Value of Lady M China 17738.46 EV of Lady M
    Total Value of Lady M Conglomerate 80954

    Percentage of retention in Lady M China by Lady M 0% 25%


    Equivalent Retention Amount 0.00 4434.62
    Equivalent Stake Value Given to Investors 17738.46 13303.85
    %stake given to investors in LM Conglomerate 21.91% 16.43%
    % stake given to investors in LM USA 0.00% 0.00%
    2016 2017 2018 2019
    18480 23100 28875 36094
    4029 5036 6295 7868
    10349 12705 15593 19130
    18 23 29 36
    47 62 82 108
    4037 5274 6877 8951
    1413 1846 2407 3133
    2624 3428 4470 5818
    47 62 82 108
    55 69 87 108
    100 88 110 137
    2515 3333 4356 5681
    73855
    0.797 0.712 0.636 0.567
    2005 2373 2770.42 45131

    50% 43.63% Assumptions:


    8869.23 7738.46 1. The invested money is completely offset by the
    8869.23 10000.00 equity in the company at either valuation price or even
    12.35% 12.35% cheaper. No debt is involved in the deal.
    1.79% 0.00% 2. LM Conglomerate = LM USA + LM China
    3. Only the perpetuity value is used in calculations, as it
    is more accurate than the EBITDA method

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