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    Task 2 Template

    Uploaded by

    Krishna Choudhary

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Task 2 Template

    Uploaded by

    Krishna Choudhary
    11 views3 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    11 views3 pages

    Task 2 Template

    Uploaded by

    Krishna Choudhary

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 3

    CONFIDENTIAL

    HappyHour Co. Company Profile


    Comprehensive Overview of HappyHour Co.
    Overview Key financials
    HappyHour Co.
    •Industry: Producer and marketer of beer, spirits, and non- Segment FY18 FY19 FY20E

    alcoholic beverages.
    Beer 100 110 135
    •Operations: Distribution and direct sales.
    •Geography: Singapore, Malaysia, China. Spirits 75 85 105
    •Manufacturing: Owns and operates facilities in Singapore and
    China; outsourced in Malaysia to Brew Co. Non-alcoholic
    50 55 60
    •Founding: Established in 1975 by Ms. Happy, the majority beverages

    owner.
    •Headquarters: Singapore. Year Revenue EBITDA NPAT
    •Growth Strategy: Expansion into China; new facilities planned
    in Cambodia. FY18 900 225 135
    •Market Position:
    • #1 player in beer and spirits in Singapore & Malaysia. FY19 961 250 153
    • #1 player in non-alcoholic beverages in Malaysia.
    • Creating new bottling facilities in Cambodia with a FY20E 1,071 300 193
    robust supply chain and strong distributor
    relationships.
    Indicative valuation
    Shareholders •Valuation Metrics: EV/EBITDA range of 10.0x – 11.5x.
    Happy •Preliminary Valuation: US$ 3,500 million.
    •Ownership Structure: Family •Sale Rumor: Majority owner Ms. Happy plans to sell and retire,
    •Happy Family: 60% Hour seeking a strategic buyer to maintain the company's founding
    •Hour Family: 20% Family
    ideology.
    •Co Family: 20% Co Fam- •Industry Trends:
    ily •Global consolidation in food and drink sectors.
    •Asian beer market growing at a 10% CAGR.
    •Increasing preference for healthier drinks and premium beers in
    Source: Southeast Asia.
    1
    CONFIDENTIAL

    Overview of auction process and key workstreams

    Date Event Key workstreams

    Release of Transaction information memorandum,


    March 19, 2020 Access provided via an online data room.
    due diligence reports, and financial forecasts.

    April 9, 2020 (start) to April 13, 2020 (end) Responses will be provided to all bidders,
    Round 1: Bidders may submit up to 20 questions.
    Indicative Bid
    at 5pm (Hong Kong Time) ensuring confidentiality of the source.
    Phase

    Evaluation of the bids based on the provided


    May 13, 2020 at 5pm (Hong Kong Time) Deadline for submitting the Indicative Bid.
    information.

    Shortlist of bidders chosen to progress to the Final


    Late May 2020 Release of Process Letter Two.
    Bid Phase.

    Round 2: Final
    Bid Phase

    Deadline for submitting full and legally binding


    Late July 2020 Shortlisted Bidders to submit their Final Bids.
    bids.

    1
    CONFIDENTIAL

    Indicative Bid Requirements:

    • Identity of the purchaser and other participants in the


    potential transaction.
    • Overview of the purchasing entity, including principal
    Purchaser shareholders and ultimate parent company.
    • Financial condition and capacity of the organization.

    • Total cash consideration in U.S. dollars on an enterprise value


    Purchase Price basis.

    • Material assumptions underlying the bid.


    • Key issues impacting the value.
    Assumptions • Explanation of the valuation methodology and key financial
    metrics used.

    • Confirmation of sufficient cash on hand and/or available credit


    Sources of Funds facilities to complete the transaction.

    • Additional information needed to complete due diligence.


    • Outline of topics or documents to review for submitting a Final
    Due Diligence Bid.
    • Specificity on work done and planned for the Final Bid Phase.

    • Proposed timetable for completing the transaction.


    • Material considerations affecting timing.
    Timing and Contingencies • Necessary approvals or consents.
    • Pre-conditions or contingencies impacting transaction
    completion.

    • How the company will fit into the purchaser's structure post-
    Structure transaction.
    • Short and long-term strategy and possible integration plans.

    • Names of financial, legal, accounting, and other advisors


    Advisors assisting in the evaluation.

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