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    Presentation B9

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    x24siddharthak
    pov of the investment bank

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    Presentation B9

    Uploaded by

    x24siddharthak
    5 views7 pages
    pov of the investment bank

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    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

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    pov of the investment bank

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views7 pages

    Presentation B9

    Uploaded by

    x24siddharthak
    pov of the investment bank

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

    Robertson

    Acquisition
    Opportunity for
    market leadership
    NDP’s offer – A good tax-free price
    but poor value proposition

    Volatile Stock No Cash Zero Dividend Stock’s Limited


    Value Component payout history Liquidity
    CY low at 4.625 vs offer
    at 10.62/ share

    Hence, Simmons does not want NDP to acquire Robertson


    Monmouth’s Strategic Opportunity

    Diversification Market Synergies and Enhanced Brand Strength European Undervalued Target
    Leadership Cost Savings Distribution and Customer Market Access
    Network Loyalty
    Methods used to evaluate 50$
    offer price

    COMPARABLE COMPANY PAST TRANSACTIONS DISCOUNTED CASH


    ANALYSIS FLOW
    Comparative Analysis

    EV/EBIAT Multiple EV of R based on Share Price of R


    comparative
    analysis

    Mean 12.85 23.13 39.6

    Median 12.75 22.95 39.3

    Aspirational 14.4 25.92 44.4


    DCF
    Valuation of Robertson

    Actual Forecasts
    2002 2003 2004 2005 2006 2007 to Infinity

    CoGS % Sales 69% 68% 67% 66% 65% 65%


    Sell & Admin % Sales 22% 21% 20% 19% 19% 19%

    Sales @ 6% 55.3 58.6 62.1 65.9 69.8 69.8


    Cost of Goods 37.9 39.9 41.6 43.5 45.4 45.4
    Sell & Admin 12.3 12.3 12.4 12.5 13.3 13.3
    Depreciation 2.1 2.3 2.5 2.7 2.9 2.9
    EBIT 3.0 4.1 5.6 7.2 8.3 8.3
    Tax @ 40% 1.2 1.7 2.2 2.9 3.3 3.3
    EBIT * (1 – tax) 1.8 2.5 3.3 4.3 5.0 5.0
    Capex -4.0 -3.5 -3.6 -3.8 -2.9
    Net working capital, NWC 18.2 19.3 20.5 21.7 23.0 23.0
    Change in NWC 1.1 1.2 1.2 1.3 0.0
    2.7755 1.38775 1.38775
    Free cash flow 1.08 2.57 2.18 2.76 4.96
    Terminal value 58.38
    Total 1.08 2.57 2.18 61.14
    Enterprise value 49.00
    Long term debt 12
    Equity Value 37.00
    Shares Outstanding 0.584
    Price per share 63.36
    Thank You

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