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Presentation B9

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x24siddharthak
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27 views7 pages

Presentation B9

Uploaded by

x24siddharthak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Robertson

Acquisition
Opportunity for
m arket leadership
NDP’s off er – 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 European Undervalued Target


Leadership Cost Savings Distribution Strength and Market Access
Network Customer
Loyalty
Methods used to evaluate
50$ off er price

COMPARABLE PAST TRANSACTIONS DISCOUNTED CASH


COMPANY ANALYSIS FLOW
Comparative Analysis

EV/EBIAT EV of R based Share Price


Multiple on comparative of R
analysis

Mean 12.85 23.13 39.6

Median 12.75 22.95 39.3

Aspirational 14.4 25.92 44.4


Valuation of Robertson
DCF 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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