2015 Nebraska ACG Cup Round2

1. Daniela Morales, Sergio Gutierrez, Edgar Lopez, Zhangde Lin
Impact
Capital Partners
2015 ACG Cup Competition

2. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Index
 Objective
 Recommendation
 Qualitative Analysis
− Company Analysis
− Industry Analysis
 Quantitative Analysis
− Purchase Price Analysis
− IRR Analysis
 Summary Conclusion
 Alternative options
 Appendix
2 | CONFIDENTIAL – ACG Cup 2015
Intro →

3. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Objective
 Conduct a qualitative and quantitative analysis to advise Impact Capital
Partners on:
− Interest in buying ParentCo
− Purchase price of ParentCo
− Capital structure and alternative options
− Exit opportunities
3 | CONFIDENTIAL – ACG Cup 2015
Recommendation ValuationsIntro → AppendixSummary AlternativesIntro →

4. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
 Impact Capital Partners should:
− Make an offer to purchase ParentCo
− Make an offer to purchase FashionCo based on 2016 performance
− Pursue a 2020 exit strategy to maximize IRR
− Break up the ParentCo by industry
Recommendation
4 | CONFIDENTIAL – ACG Cup 2015
Recommendation

5. Impact
Capital Partners
Company Analysis
Daniela Morales

6. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
SWOT Analysis
6 | CONFIDENTIAL – ACG Cup 2015
Strengths
ParentCo
 Long , established company
 On track to meet (or beat) projected earnings
 Strong management team
FashionCo
 High growth projections for 2016
Weaknesses
ParentCo
 Decline in stock price of 9.72% in the last year
FashionCo
 Performance uncertainty
Opportunities
ParentCo
 Undervalued
 Increase value through acquisition
 Profit after exit
FashionCo
 Synergies through acquisition
 Profit after exit
Threats
ParentCo
 Low industry future expected growth
FashionCo
 Not meeting projected performance
 Skepticism from ParentCo’s CFO
InternalExternal
Positive Negative
Company

7. Impact
Capital Partners
Industry Analysis
Sergio Gutierrez

8. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Porter’s Five Forces: Media Industry
8 | CONFIDENTIAL – ACG Cup 2015
• High customer loyalty
• Low price sensitivity
• Medium switching costs
• Recurring purchases
Buyer Power
MED
• Scattered suppliers
• Low cost of inputs
• Low switching costs
Supplier Power
LOW
• Abundance of substitute
media
• High quality substitute
media
Threats of Substitution
HIGH
• Economies of scale
• Capital requirements
• low growth
• Internet
Threat of New Entrants
LOW
• Wide and diverse
competitors
• Long, established
competitors
• Exit barriers
Rivalry
MED
Industry

9. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Porter’s Five Forces: Fashion Industry
9 | CONFIDENTIAL – ACG Cup 2015
• Men, women, and children
• High price sensitivity
• High customer acquisition
price
Buyer Power
HIGH
• Low switching costs
• Economies of scale
• Low product differentiation
Supplier Power
HIGH
• Abundance of substitute
products
• Low switching costs
• High buyer propensity to
substitute
Threats of Substitution
HIGH
• Economies of scale
• High branding costs
• High capital requirements
Threat of New Entrants
LOW
• Competitors are big
• Low long-term growth rates
• Low product differentiation
Rivalry
HIGH
Industry

10. Impact
Capital Partners
Quantitative Analysis
Edgar Lopez

11. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Capitalization Table
11 | CONFIDENTIAL – ACG Cup 2015
(figures in millions except per share amount)
As of Round 1 As of Round 2
Share Price Mkt. Value Share Price Mkt. Value
Masterson Family
Harvey Masterson 4.7 15.5% $18.3 $85.1 $16.5 $76.9
William Masterson 0.9 3.0% 18.3 16.5 16.5 14.9
Rebecca Masterson 1.7 5.5% 18.3 30.2 16.5 27.3
Total 7.2 24.0% $18.3 $131.8 $16.5 $119.0
Investors
Activist Capital 1.2 3.9% $18.3 $21.4 $16.5 $19.3
Other Institutional Investors 6.8 22.8% 18.3 125.1 16.5 112.9
Total 8.0 26.7% $18.3 $146.5 $16.5 $132.2
Public 14.8 49.3% $18.3 $271.0 $16.5 $244.6
Total 30.0 100.0% $18.3 $549.3 $16.5 $495.9
Fully Diluted
Shares
%Shareholders
Quantitative

12. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Purchase Price Analysis
12 | CONFIDENTIAL – ACG Cup 2015
EBITDA Purchase Multiple 6.1x 6.6x 7.1x 7.6x 8.1x
2015EEBITDA $80.8 $80.8 $80.8 $80.8 $80.8
ImpliedTotal Enterprise Value $489.5 $529.89 $570.3 $610.7 $651.1
Plus: Net Debt $2.8 $2.8 $2.8 $2.8 $2.8
ImpliedEquity Value $492.3 $532.7 $573.1 $613.5 $653.9
Sale Price As of Round1 As of Round2
Market Capitalization $549.3 $495.9
Control Premium(15%) 82.4 74.4
Debt 70.1 70.1
Cash (67.2) (67.2)
Implied Total Equity Value $634.5 $573.1
As of Round2 by Entity MediaCo ApparelCo
Net Income % 66.3% 33.7%
Market Capitalization $329.0 $166.9
Control Premium(15%) 49.3 25.0
Debt 70.1 0.0
Cash (55.9) (11.3)
Implied Total Equity Value $392.4 $180.7
Quantitative

13. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Purchase Price
$392.4 ($mm)
Multiples 2014A 2015E
Sales 0.7x 0.7x
EBITDA 6.1x 6.7x
$265.7
$195.0
$262.1
$178.6
$560.8
$441.7
$553.1
$404.6
$419.2
$269.7
$819.4
$573.4
$808.2
$525.2
$736.3
$603.7
$726.2
$553.0
$656.3
$528.5
$0 $200 $400 $600 $800 $1,000
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
Perp. Method
Multiple Method
Implied Total Enterprise Value ($ in millions)
Relevant
Multiple
Precedent
Transactions
3.0x-8.9x
0.5x-1.5x
0.5x-1.5x
3.0x-8.9x
Multiple Method:
3.0x-8.9x exit multiple
8.8-10.8% discount rate
Perp. Method:
1.0-3.0% growth rate
8.8-10.8% discount rateDCF Analysis
6.9x-9.4x
6.9x-9.4x
1.0x-1.4x
1.0x-1.5x
Public
Comparables
$392.4
Precedent
Transactions
Fit
Transaction 3
Transaction 6
Transaction 7
Transaction 9
Public
Comparables
Fit
NYT Company
Time Inc.
MediaCo
Financial Data ($mm)
2014A 2015E
Sales $535.1 $527.8
EBITDA $64.1 $58.7
Illustrative Valuation Analysis: MediaCo
13 | CONFIDENTIAL – ACG Cup 2015
Source: ACG Cup 2015 Case
Quantitative

14. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Purchase Price
$180.7 ($mm)
Multiples 2014A 2015E
Sales 0.7x 0.6x
EBITDA 8.8x 8.2x
$113.6
$106.4
$122.4
$114.2
$74.5
$92.7
$80.3
$99.5
$208.3
$143.3
$336.6
$270.0
$362.8
$290.0
$244.0
$246.1
$263.0
$264.2
$693.9
$316.4
$0 $100 $200 $300 $400 $500 $600 $700 $800
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
Perp. Method
Multiple Method
Implied Total Enterprise Value ($ in millions)
Relevant
Multiple
Precedent
Transactions
5.2x-13.2x
0.4x-1.3x
0.4x-1.3x
5.2x-13.2x
Multiple Method:
5.2x-13.2x exit multiple
11.0-13.0% discount rate
Perp. Method:
8.0-9.0% growth rate
11.0-13.0% discount rateDCF Analysis
4.5x-12.0x
4.5x-12.0x
0.3x-0.9x
0.3x-0.9x
Public
Comparables
$180.7
ApparelCo
Financial Data ($mm)
2014A 2015E
Sales $258.1 $278.2
EBITDA $20.5 $22.1
Precedent
Transactions
Fit
Transaction 6
Transaction 8
Transaction 13
Transaction 15
Transaction 17
Transaction 20
Public
Comparables
Fit
Ever-Glory
International
Group, Inc.
G-III Apparel
Group, Ltd.
Illustrative Valuation Analysis: ApparelCo
14 | CONFIDENTIAL – ACG Cup 2015
Source: ACG Cup 2015 Case
Quantitative

15. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Base Case: Assumptions & Summary of Operating Results
15 | CONFIDENTIAL – ACG Cup 2015
SUMMARY OF OPERATING RESULTS Pro Forma 1 2 3 4 5
Fiscal year ended December 31, 2013 2014 2015 2016 2017 2018 2019 2020
Total revenues $790.5 $793.2 $806.0 $824.1 $848.3 $877.5 $911.6 $954.7
% growth 0.3% 1.6% 2.2% 2.9% 3.4% 3.9% 4.7%
Gross Profit $267.2 $267.9 $265.5 $265.8 $276.2 $281.9 $289.1 $299.4
% margin 33.8% 33.8% 32.9% 32.3% 32.6% 32.1% 31.7% 31.4%
EBITDA $89.2 $84.7 $80.8 $76.9 $85.3 $89.1 $92.2 $96.6
% margin 11.3% 10.7% 10.0% 9.3% 10.1% 10.2% 10.1% 10.1%
Other Financial Data
Cash interest expense $41.0 $40.0 $38.9 $37.7 $36.2
Total interest expense 45.1 44.2 43.2 42.0 40.6
(Increase) decrease in net working capital 0.7 (2.3) (2.4) (2.4) (2.2)
Capital expenditures 9.7 9.1 9.5 9.9 10.5
Sources & Uses of Funds
% of Mult. of Cumulative
Sources of Funds ($mm) Total Cap. 2015 EBITDA Multiple Uses of Funds ($mm)
Revolver $0.0 0.0% 0.0x 0.0x Purchase equity $570.3
Term Loan 282.8 48.6% 3.5x 3.5x Repay bank debt 70.1
Subordinated notes 0.0 0.0% 0.0x 3.5x Financing Fees 6.4
Mezzanine Debt 202.0 34.7% 2.5x 6.0x Other Fees & Expenses 2.0
Impact Capital Partners Equity 96.7 16.6% 1.2x 7.2x Cash on balance sheet (67.2)
Total Sources of Funds $581.5 100.0% 7.2x 7.2x Total Uses of Funds $581.5
Quantitative

16. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Base Case: Capital Structure & Credit Statistics
16 | CONFIDENTIAL – ACG Cup 2015
Pro Forma
CAPITALIZATION 2015 2016 2017 2018 2019 2020
Cash $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Revolver $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Term Loan 282.8 259.9 234.3 205.9 174.8 140.2
Total Bank Debt $282.8 $259.9 $234.3 $205.9 $174.8 $140.2
Senior notes 0.0 0.0 0.0 0.0 0.0 0.0
Total Senior Debt $282.8 $259.9 $234.3 $205.9 $174.8 $140.2
Mezzanine Debt 202.0 206.0 210.2 214.4 218.7 223.1
Existing debt 0.0 0.0 0.0 0.0 0.0 0.0
Total Debt $484.8 $465.9 $444.5 $420.3 $393.6 $363.3
Shareholders' equity 94.7 100.9 115.0 132.0 151.5 174.4
Total Capitalization $579.46 $566.9 $559.5 $552.3 $545.1 $537.7
Cash available for debt service $22.9 $25.5 $28.5 $31.0 $34.7
Cumulative cash available for debt service 22.9 48.4 76.9 107.9 142.6
% of bank debt outstanding 91.9% 82.9% 72.8% 61.8% 49.6%
CREDIT STATISTICS
EBITDA / Cash interest expense 1.9x 2.1x 2.3x 2.4x 2.7x
(EBITDA-Cap Ex) / Cash interest expense 1.6x 1.9x 2.0x 2.2x 2.4x
EBITDA / Total interest expense 1.7x 1.9x 2.1x 2.2x 2.4x
(EBITDA-Cap Ex) / Total interest expense 1.5x 1.7x 1.8x 2.0x 2.1x
Bank debt / EBITDA 3.4x 2.7x 2.3x 1.9x 1.5x
Mezzanine debt / EBITDA 2.7x 2.5x 2.4x 2.4x 2.3x
Total debt / EBITDA 6.1x 5.2x 4.7x 4.3x 3.8x
Quantitative

17. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Downside Case: Assumptions & Summary of Operating Results
17 | CONFIDENTIAL – ACG Cup 2015
SUMMARY OF OPERATING RESULTS Pro Forma 1 2 3 4 5
Fiscal year ended December 31, 2013 2014 2015 2016 2017 2018 2019 2020
Total revenues $790.5 $793.2 $806.0 $824.1 $848.3 $877.5 $911.6 $954.7
% growth 0.3% 1.6% 2.2% 2.9% 3.4% 3.9% 4.7%
Gross Profit $267.2 $267.9 $265.5 $265.8 $276.2 $281.9 $289.1 $299.4
% margin 33.8% 33.8% 32.9% 32.3% 32.6% 32.1% 31.7% 31.4%
EBITDA $89.2 $84.7 $80.8 $76.9 $84.6 $88.5 $91.5 $95.8
% margin 11.3% 10.7% 10.0% 9.3% 10.0% 10.1% 10.0% 10.0%
Other Financial Data
Cash interest expense $41.0 $40.1 $39.0 $37.7 $36.3
Total interest expense 45.1 44.2 43.2 42.0 40.7
(Increase) decrease in net working capital 0.7 (2.3) (2.4) (2.4) (2.2)
Capital expenditures 9.7 9.1 9.5 9.9 10.5
Sources & Uses of Funds
% of Mult. of Cumulative
Sources of Funds ($mm) Total Cap. 2015 EBITDA Multiple Uses of Funds ($mm)
Revolver $0.0 0.0% 0.0x 0.0x Purchase equity $570.3
Term Loan 282.8 48.6% 3.5x 3.5x Repay bank debt 70.1
Subordinated notes 0.0 0.0% 0.0x 3.5x Financing Fees 6.4
Mezzanine Debt 202.0 34.7% 2.5x 6.0x Other Fees & Expenses 2.0
Impact Capital Partners Equity 96.7 16.6% 1.2x 7.2x Cash on balance sheet (67.2)
Total Sources of Funds $581.5 100.0% 7.2x 7.2x Total Uses of Funds $581.5
Quantitative

18. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Downside Case: Capitalization & Credit Statistics
18 | CONFIDENTIAL – ACG Cup 2015
CREDIT STATISTICS
EBITDA / Cash interest expense 1.9x 2.1x 2.3x 2.4x 2.6x
(EBITDA-Cap Ex) / Cash interest expense 1.6x 1.9x 2.0x 2.2x 2.3x
EBITDA / Total interest expense 1.7x 1.9x 2.0x 2.2x 2.4x
(EBITDA-Cap Ex) / Total interest expense 1.5x 1.7x 1.8x 1.9x 2.1x
Bank debt / EBITDA 3.4x 2.8x 2.3x 1.9x 1.5x
Mezzanine debt / EBITDA 2.7x 2.5x 2.4x 2.4x 2.3x
Total debt / EBITDA 6.1x 5.3x 4.8x 4.3x 3.8x
Pro Forma
CAPITALIZATION 2015 2016 2017 2018 2019 2020
Cash $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Revolver $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Term Loan 282.8 259.9 234.8 206.8 176.2 142.2
Total Bank Debt $282.8 $259.9 $234.8 $206.8 $176.2 $142.2
Senior notes 0.0 0.0 0.0 0.0 0.0 0.0
Total Senior Debt $282.8 $259.9 $234.8 $206.8 $176.2 $142.2
Mezzanine Debt 202.0 206.0 210.2 214.4 218.7 223.1
Existing debt 0.0 0.0 0.0 0.0 0.0 0.0
Total Debt $484.8 $465.9 $445.0 $421.2 $395.0 $365.3
Shareholders' equity 94.7 100.9 114.6 131.1 150.1 172.4
Total Capitalization $579.46 $566.9 $559.5 $552.3 $545.1 $537.7
Cash available for debt service $22.9 $25.1 $28.0 $30.5 $34.1
Cumulative cash available for debt service 22.9 48.0 76.0 106.5 140.6
% of bank debt outstanding 91.9% 83.0% 73.1% 62.3% 50.3%
Quantitative

19. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Upside Case: Assumptions & Summary of Operating Results
19 | CONFIDENTIAL – ACG Cup 2015
SUMMARY OF OPERATING RESULTS Pro Forma 1 2 3 4 5
Fiscal year ended December 31, 2013 2014 2015 2016 2017 2018 2019 2020
Total revenues $790.5 $793.2 $806.0 $824.1 $1,107.6 $1,160.5 $1,219.1 $1,289.0
% growth 0.3% 1.6% 2.2% 34.4% 4.8% 5.1% 5.7%
Gross Profit $267.2 $267.9 $265.5 $265.8 $324.4 $335.1 $347.0 $362.4
% margin 33.8% 33.8% 32.9% 32.3% 29.3% 28.9% 28.5% 28.1%
EBITDA $89.2 $84.7 $80.8 $76.9 $76.6 $114.2 $119.4 $126.0
% margin 11.3% 10.7% 10.0% 9.3% 6.9% 9.8% 9.8% 9.8%
Other Financial Data
Cash interest expense $41.0 $39.6 $38.5 $37.5 $35.5
Total interest expense 45.1 43.8 42.7 41.8 39.9
(Increase) decrease in net working capital 0.7 4.7 (37.2) (5.0) (5.2)
Capital expenditures 9.7 13.7 13.8 14.2 16.2
Sources & Uses of Funds
% of Mult. of Cumulative
Sources of Funds ($mm) Total Cap. 2015 EBITDA Multiple Uses of Funds ($mm)
Revolver $0.0 0.0% 0.0x 0.0x Purchase equity $570.3
Term Loan 282.8 48.6% 3.5x 3.5x Repay bank debt 70.1
Subordinated notes 0.0 0.0% 0.0x 3.5x Financing Fees 6.4
Mezzanine Debt 202.0 34.7% 2.5x 6.0x Other Fees & Expenses 2.0
Impact Capital Partners Equity 96.7 16.6% 1.2x 7.2x Cash on balance sheet (67.2)
Total Sources of Funds $581.5 100.0% 7.2x 7.2x Total Uses of Funds $581.5
Quantitative

20. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
CREDIT STATISTICS
EBITDA / Cash interest expense 1.9x 1.9x 3.0x 3.2x 3.6x
(EBITDA-Cap Ex) / Cash interest expense 1.6x 1.6x 2.6x 2.8x 3.1x
EBITDA / Total interest expense 1.7x 1.8x 2.7x 2.9x 3.2x
(EBITDA-Cap Ex) / Total interest expense 1.5x 1.4x 2.4x 2.5x 2.8x
Bank debt / EBITDA 3.4x 2.9x 1.9x 1.4x 1.0x
Mezzanine debt / EBITDA 2.7x 2.7x 1.9x 1.8x 1.8x
Total debt / EBITDA 6.1x 5.6x 3.7x 3.2x 2.7x
Upside Case: Capitalization & Credit Statistics
20 | CONFIDENTIAL – ACG Cup 2015
Pro Forma
CAPITALIZATION 2015 2016 2017 2018 2019 2020
Cash $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Revolver $0.0 $0.0 $0.0 $14.5 $0.0 $0.0
Term Loan 282.8 259.9 219.7 197.8 168.6 121.1
Total Bank Debt $282.8 $259.9 $219.7 $212.2 $168.6 $121.1
Senior notes 0.0 0.0 0.0 0.0 0.0 0.0
Total Senior Debt $282.8 $259.9 $219.7 $212.2 $168.6 $121.1
Mezzanine Debt 202.0 206.0 210.2 214.4 218.7 223.1
Existing debt 0.0 0.0 0.0 0.0 0.0 0.0
Total Debt $484.8 $465.9 $429.9 $426.6 $387.3 $344.2
Shareholders' equity 94.7 100.9 185.2 216.0 250.0 289.0
Total Capitalization $579.46 $566.9 $615.1 $642.6 $637.3 $633.3
Cash available for debt service $22.9 $23.8 $7.5 $43.6 $47.5
Cumulative cash available for debt service 22.9 46.7 54.2 97.9 145.3
% of bank debt outstanding 91.9% 77.7% 75.1% 59.6% 42.8%
Quantitative

21. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Impact Capital Partners Equity 2015 2016 2017 2018 2019 2020
Initial Investment ($94.7)
Equity Participation 0.0 0.0 0.0 0.0 413.2
($94.7) $0.0 $0.0 $0.0 $0.0 $413.2
Exit Valuation
Exit Year 2020
Exit Multiple 8.1x
Exit Year EBITDA $96.6
Exit Valuation (Total Firm Value) $778.5
Revolver $0.0
Term Loan 140.2
Mezzanine Debt 223.1
Existing debt 0.0
Transaction Fees 2.0
Total Debt 365.3
Less: Accumulated Cash 0.0
Net Debt $365.3
Allocation Proceeds (Equity Value) $413.2
Base Case: IRR Analysis
21 | CONFIDENTIAL – ACG Cup 2015
Equity Allocation Equity
Investment Ownership
FashionCo Seller Equity 0.0 0.0%
Impact Capital Partners Equity 94.7 100.0%
Total $94.7 100.0%
Sponsor IRR
33.7%
Sponsor IRR
34.3%
Quantitative

22. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Downside Case: IRR Analysis
22 | CONFIDENTIAL – ACG Cup 2015
Exit Valuation
Exit Year 2020
Exit Multiple 8.1x
Exit Year EBITDA $95.8
Exit Valuation (Total Firm Value) $772.1
Revolver $0.0
Term Loan 142.2
Mezzanine Debt 223.1
Existing debt 0.0
Transaction Fees 2.0
Total Debt 367.3
Less: Accumulated Cash 0.0
Net Debt $367.3
Allocation Proceeds (Equity Value) $404.8
Equity Allocation Equity
Investment Ownership
FashionCo Seller Equity 0.0 0.0%
Impact Capital Partners Equity 94.7 100.0%
Total $94.7 100.0%
Impact Capital Partners Equity 2015 2016 2017 2018 2019 2020
Initial Investment ($94.7)
Equity Participation 0.0 0.0 0.0 0.0 404.8
($94.7) $0.0 $0.0 $0.0 $0.0 $404.8
Sponsor IRR
33.7%
Quantitative

23. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Impact Capital Partners Equity 2015 2016 2017 2018 2019 2020
Initial Investment ($94.7)
Equity Participation 0.0 0.0 0.0 0.0 512.6
($94.7) $0.0 $0.0 $0.0 $0.0 $512.6
Equity Allocation Equity
Investment Ownership
FashionCo Seller Equity 0.0 23.4%
Impact Capital Partners Equity 94.7 76.6%
Total $94.7 100.0%
Exit Valuation
Exit Year 2020
Exit Multiple 8.1x
Exit Year EBITDA $126.0
Exit Valuation (Total Firm Value) $1,015.5
Revolver $0.0
Term Loan 121.1
Mezzanine Debt 223.1
Existing debt 0.0
Transaction Fees 2.0
Total Debt 346.2
Less: Accumulated Cash 0.0
Net Debt $346.2
Allocation Proceeds (Equity Value) $669.3
Sponsor IRR
40.2%
Upside Case: IRR Analysis
23 | CONFIDENTIAL – ACG Cup 2015
Quantitative

24. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
IRR Summary
24 | CONFIDENTIAL – ACG Cup 2015
33.7% 34.3%
40.2%
0.0%
10.0%
20.0%
30.0%
40.0%
Downside Base Upside
Total IRR
Additional IRR
Minimum IRR
Quantitative

25. Impact
Capital Partners
Summary Recommendation
Zhangde Lin

26. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Leverage Buyout
Company
Criteria
ParentCo FashionCo
Mature industry and/or company √ √
Clean balance sheet with low leverage √ √
Strong management team and potential
synergies
√ √
Steady cash flows √ √
Low future capital expenditure and
working capital requirements
√ √
Possible sale of underperforming/non-
core assets
√ √
Feasible exit options √ √
26 | CONFIDENTIAL – ACG Cup 2015
Summary

27. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Conclusion
Impact Capital Partners should:
− Make an offer to purchase ParentCo – $573.1 million
− Capital Structure:
− Make an offer to purchase FashionCo if they meet their 2016 projections
− Pursue a 2020 exit strategy to maximize IRR:
− Break up the ParentCo by industry
27 | CONFIDENTIAL – ACG Cup 2015
Downside Case Base Case Upside Case
33.7% 34.3% 40.2%
Sources & Uses of Funds
Mult. of
Sources of Funds ($mm) 2015 EBITDA Uses of Funds ($mm)
Revolver $0.0 0.0x Purchase equity $570.3
Term Loan 282.8 3.5x Repay bank debt 70.1
Subordinated notes 0.0 0.0x Financing Fees 6.4
Mezzanine Debt 202.0 2.5x Other Fees & Expenses 2.0
Impact Capital Partners Equity 96.7 1.2x Cash on balance sheet (67.2)
Total Sources of Funds $581.5 7.2x Total Uses of Funds $581.5
Summary

28. Impact
Capital Partners
Alternative Options
Zhangde Lin

29. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Alternative Options
− Roll over the non-public existing shareholder equity
− Public share repurchase
− Seek other private equity partners
− Raise capital from private investors
29 | CONFIDENTIAL – ACG Cup 2015
Alternatives

30. Impact
Capital Partners
Appendix

31. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Appendix Index
31 | CONFIDENTIAL – ACG Cup 2015
Appendix
Company Background: ParentCo 32
Company Background: fashionCo 33
SWOT Analysis 34
Valuation Analysis: MediaCo 35
Valuation Analysis: ApparelCo 37
Valuation Analysis: FashionCo 39
Comparable Company Transactions 41
Comparable Public Companies 43
WACC Analysis 45
Control Premium Analysis 47
Assumptions and Financial Models 48

32. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Company Background: ParentCo
32 | CONFIDENTIAL – ACG Cup 2015
 Founded approximately 40 years ago by Harvey Masterson
 Comprised on two entities: MediaCo and ApparelCo
− Few synergies due to differences in industries
MediaCo
 Publishing of daily, weekly and monthly
periodicals focused on consumer product
reviews
− Account for over 90% of revenues
− Niche market of 45 to 65 year olds
 Consumer product reviews website
 Small television production company
− Not very profitable. However, enhances marketing
reach
 Considerations:
− Limited opportunities for organic growth in the
coming years, except for attracting a younger
audience
ApparelCo
 Funded 10 years ago by William Masterson
 Design, development, sourcing, marketing, and
distribution of apparel for men and women
 High quality and fashionable products
 Target audience between the age 18 and 35 years
old
 Lower margins due to higher SG&A expenses
 Considerations:
− Management believes that by achieving a greater
scale and streamlining operations they can reduce
SG&A expenses by 2% of revenue
Appendix

33. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Company Background: FashionCo
33 | CONFIDENTIAL – ACG Cup 2015
 Founded 40 years ago
 Privately held by a small group of passive investors
 Engages in design, sourcing, marketing, and distribution of apparel and accessories for
men, women and children
− Products known for their affordability
 Products are carried by major apparel retailers throughout the country
 Retail and outlet stores sales account for less than 10% of total sales
 Open for sale after 2016
− Open to alternative structures such as stock rollover or earn-out
 Considerations:
− Synergies between ApparelCo and FashionCo could reduce SG&A expenses by 3.5% per year
Appendix

34. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
SWOT Analysis by Company
34 | CONFIDENTIAL – ACG Cup 2015
Strengths
MediaCo
 Long, established company
ApparelCo
 High quality and fashionable apparel
 Young target audience
 Revenue growth in line with comp. companies
FashionCo
 Ample distribution channels
 Affordable products
Weaknesses
MediaCo
 Non-diversified revenue stream
 Low profits in Production portion
ApparelCo
 Few synergies with MediaCo
 Lower profit margins
FashionCo
 Lack of owners interest in industry
 Untrendy products
Opportunities
MediaCo
 Capturing new market segment
 Strengthening brands
ApparelCo
 Faster future growth than MediaCo
 Economies of scale
FashionCo
 Increase sales percentage in brick and mortar
stores
Threats
MediaCo
 Low industry future expected growth
ApparelCo
 Possible request for a seat in the board of
directors from activist hedge funds
FashionCo
 Lack of customer interest
 Economic downturn can impact demand
InternalExternal
Positive Negative
Appendix

35. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Purchase Price
$392.4 ($mm)
Multiples 2014A 2015E
Sales 0.7x 0.7x
EBITDA 6.1x 6.7x
$265.7
$195.0
$262.1
$178.6
$560.8
$441.7
$553.1
$404.6
$419.2
$269.7
$819.4
$573.4
$808.2
$525.2
$736.3
$603.7
$726.2
$553.0
$656.3
$528.5
$0 $200 $400 $600 $800 $1,000
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
Perp. Method
Multiple Method
Implied Total Enterprise Value ($ in millions)
Relevant
Mulitple
Precedent
Transactions
3.0x-8.9x
0.5x-1.5x
0.5x-1.5x
3.0x-8.9x
Multiple Method:
3.0x-8.9x exit multiple
8.8-10.8% discount rate
Perp. Method:
1.0-3.0% growth rate
8.8-10.8% discount rateDCF Analysis
6.9x-9.4x
6.9x-9.4x
1.0x-1.4x
1.0x-1.5x
Public
Comparables
$392.4
Precedent
Transactions
Fit
Transaction 3
Transaction 6
Transaction 7
Transaction 9
Public
Comparables
Fit
NYT Company
Time Inc.
MediaCo
Financial Data ($mm)
2014A 2015E
Sales $535.1 $527.8
EBITDA $64.1 $58.7
Illustrative Valuation Analysis: MediaCo
35 | CONFIDENTIAL – ACG Cup 2015
Source: ACG Cup 2015 Case
Appendix

36. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Preliminary Discounted Cash Flow and Sensitivity Analysis: MediaCo
36 | CONFIDENTIAL – ACG Cup 2015
$ in millions
Cash Flow 2016E 2017E 2018E 2019E 2020E
Net Sales $522.3 $522.9 $524.5 $528.5 $539.1
% growth -1.0% 0.1% 0.3% 0.8% 2.0% Perp growth rate / multiple 2.0% 6.0x
PF EBITDA 56.0 62.0 62.2 62.7 63.9 PV of UFCF $153.2 $153.2
% margin 10.7% 11.9% 11.9% 11.9% 11.9% Discount rate 9.8% 9.8%
Depreciation & Amortization 16.0 14.2 14.2 14.4 14.6 Terminal value $563.3 $382.9
PF EBIT 40.0 47.8 47.9 48.3 49.3 PV of terminal value $353.5 $240.2
% margin 7.7% 9.1% 9.1% 9.1% 9.1% TEV $506.7 $393.4
Taxes @ 35% 14.0 16.7 16.8 16.9 17.2 Net debt $14.1 $14.1
Unlevered Net Income $26.0 $31.1 $31.2 $31.4 $32.0 Equity value $492.5 $379.3
+ Depreciation & Amortization 16.0 14.2 14.2 14.4 14.6 Implied EBITDAmultiple 8.6x 6.7x
- Capital expenditures 4.9 4.7 4.7 4.8 4.9
- Changes in working capital 0.5 0.1 (0.2) (0.4) (1.1) Implied Sales multiple 1.0x 0.7x
Unlevered free cash flow $36.6 $40.5 $40.8 $41.4 $42.9
DCF
Perpetuity
method
Multiples
method
Perpetuity Method Multiples Method
Growth Rate Exit Multiple
$507 1.0% 2.0% 3.0% $393 3.0x 6.0x 8.9x
7.8% $593.6 $675.0 $790.6 7.8% $286.9 $416.6 $546.3
8.8% $519.6 $577.9 $656.3 8.8% $280.8 $404.7 $528.5
9.8% $463.3 $506.7 $562.8 9.8% $275.1 $393.4 $511.7
10.8% $419.2 $452.5 $494.3 10.8% $269.7 $382.8 $495.9
11.8% $383.9 $410.0 $442.1 11.8% $264.6 $372.7 $480.8
Discount
Rate
Discount
Rate
Sensativity Analysis
Appendix

37. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Purchase Price
$180.7 ($mm)
Multiples 2014A 2015E
Sales 0.7x 0.6x
EBITDA 8.8x 8.2x
$113.6
$106.4
$122.4
$114.2
$74.5
$92.7
$80.3
$99.5
$208.3
$143.3
$336.6
$270.0
$362.8
$290.0
$244.0
$246.1
$263.0
$264.2
$693.9
$316.4
$0 $100 $200 $300 $400 $500 $600 $700 $800
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
Perp. Method
Multiple Method
Implied Total Enterprise Value ($ in millions)
Relevant
Multiple
Precedent
Transactions
5.2x-13.2x
0.4x-1.3x
0.4x-1.3x
5.2x-13.2x
Multiple Method:
5.2x-13.2x exit multiple
11.0-13.0% discount rate
Perp. Method:
8.0-9.0% growth rate
11.0-13.0% discount rateDCF Analysis
4.5x-12.0x
4.5x-12.0x
0.3x-0.9x
0.3x-0.9x
Public
Comparables
$180.7
ApparelCo
Financial Data ($mm)
2014A 2015E
Sales $258.1 $278.2
EBITDA $20.5 $22.1
Precedent
Transactions
Fit
Transaction 6
Transaction 8
Transaction 13
Transaction 15
Transaction 17
Transaction 20
Public
Comparables
Fit
Ever-Glory
International
Group, Inc.
G-III Apparel
Group, Ltd.
Illustrative Valuation Analysis: ApparelCo
37 | CONFIDENTIAL – ACG Cup 2015
Source: ACG Cup 2015 Case
Appendix

38. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Preliminary Discounted Cash Flow and Sensitivity Analysis: ApparelCo
38 | CONFIDENTIAL – ACG Cup 2015
Cash Flow 2016E 2017E 2018E 2019E 2020E
Net Sales $301.8 $325.4 $353.1 $383.1 $415.6
% growth 8.5% 7.8% 8.5% 8.5% 8.5% Perp growth rate / multiple 8.5% 9.2x
PF EBITDA 23.7 27.2 29.5 32.0 34.7 PV of UFCF $45.9 $45.9
% margin 7.9% 8.4% 8.4% 8.4% 8.4% Discount rate 12.0% 12.0%
Depreciation & Amortization 4.3 3.3 3.6 3.9 4.2 Terminal value $473.4 $318.4
PF EBIT 19.5 23.9 25.9 28.1 30.5 PV of terminal value $268.0 $180.3
% margin 6.4% 7.3% 7.3% 7.3% 7.3% TEV $313.9 $226.1
Taxes @ 35% 6.8 8.4 9.1 9.8 10.7 Net debt ($11.3) ($11.3)
Unlevered Net Income $12.6 $15.5 $16.8 $18.3 $19.8 Equity value $325.2 $237.4
+ Depreciation & Amortization 4.3 3.3 3.6 3.9 4.2 Implied EBITDAmultiple 14.2x 10.3x
- Capital expenditures 4.8 4.4 4.8 5.2 5.6
- Changes in working capital 2.2 2.1 2.5 2.7 3.0 Implied Sales multiple 1.1x 0.8x
Unlevered free cash flow $9.9 $12.4 $13.2 $14.3 $15.5
Perpetuity
method
Multiples
method
DCF
Perpetuity Method Multiples Method
Growth Rate Exit Multiple
$314 8.00% 8.5% 9.0% $226 5.2x 9.2x 13.2x
10.0% $551.5 $717.7 $1,042.4 10.0% $157.4 $243.1 $328.9
11.0% $370.6 $436.1 $533.6 11.0% $152.4 $234.4 $316.4
12.0% $279.7 $313.9 $359.3 12.0% $147.8 $226.1 $304.5
13.0% $225.3 $245.9 $271.6 13.0% $143.3 $218.3 $293.3
14.0% $189.1 $202.8 $219.1 14.0% $139.1 $210.9 $282.6
Discount
Rate
Discount
Rate
Sensativity Analysis
$ in millions
Appendix

39. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
$85.6
$79.7
$91.7
$93.5
$56.1
$69.4
$60.2
$81.4
$99.1
$76.7
$196.3
$201.8
$210.4
$236.8
$183.8
$184.3
$197.0
$216.3
$231.3
$181.2
$0 $100 $200 $300 $400 $500
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
2014A Sales
2014A EBITDA
2015E Sales
2015E EBITDA
Perp. Method
Multiple Method
Implied Total Enterprise Value ($ in millions)
Relevant
Mulitple
Precedent
Transactions
8.0x-10.0x
0.5x-2.0x
0.5x-2.0x
8.0x-10.0x
Multiple Method:
7.0x-9.0x exit multiple
10.0-14.0% discount rate
Perp. Method:
5.0-7.0% growth rate
10.0-14.0% discount rateDCF Analysis
6.0x-9.0x
8.0x-10.0x
0.5x-2.0x
0.5x-2.0x
Public
Comparables
$132.0
FashionCo
Financial Data ($mm)
2014A 2015E
Sales $194.5 $208.5
EBITDA $15.4 $18.1
Starting Valuation
$132.0 ($mm)
Multiples 2014A 2015E
Sales 0.7x 0.6x
EBITDA 8.6x 7.3x
Precedent
Transactions
Fit
Transaction 8
Transaction 13
Transaction 15
Transaction 17
Transaction 20
Public
Comparables
Fit
Ever-Glory
International
Group, Inc.
G-III Apparel
Group, Ltd.
Illustrative Valuation Analysis: FashionCo
39 | CONFIDENTIAL – ACG Cup 2015
Source: ACG Cup 2015 Case
Appendix

40. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Perpetuity Method Multiples Method
Growth Rate Exit Multiple
$137 6.3% 7.3% 8.3% $127 5.2x 9.2x 13.2x
10.0% $176.0 $235.1 $361.1 10.0% $85.2 $137.0 $188.8
11.0% $139.5 $173.2 $231.3 11.0% $82.2 $131.7 $181.2
12.0% $115.7 $137.4 $170.5 12.0% $79.4 $126.7 $174.1
13.0% $99.1 $114.0 $135.3 13.0% $76.7 $122.0 $167.3
14.0% $86.8 $97.7 $112.4 14.0% $74.1 $117.5 $160.8
Discount
Rate
Discount
Rate
Sensativity Analysis
Perp growth rate / multiple 7.3% 9.2x
PV of UFCF $17.8 $17.8
Discount rate 12.0% 12.0%
Terminal value $168.2 $192.3
PV of terminal value $119.6 $108.9
TEV $137.4 $126.7
Net debt $3.0 $3.0
Equity value $134.4 $123.7
Implied EBITDAmultiple 7.6x 7.0x
Implied Sales multiple 0.7x 0.6x
DCF
Perpetuity
method
Multiples
method
Cash Flow 2015E 2016E 2017E
Net Sales $208.5 $224.0 $240.1
% growth 7.5% 7.2%
PF EBITDA 18.1 20.9 21.0
% margin 8.7% 9.3% 8.7%
Depreciation & Amortization 2.9 2.3 3.3
PF EBIT 15.1 18.6 17.7
% margin 7.3% 8.3% 7.4%
Taxes @ 40% 6.1 7.4 7.1
Unlevered Net Income $9.1 $11.2 $10.6
+ Depreciation & Amortization 2.9 2.3 3.3
- Capital expenditures 2.1 2.9 4.3
- Changes in working capital 4.7 2.1 2.1
Unlevered free cash flow $5.3 $8.6 $7.5
Preliminary Discounted Cash Flow and Sensitivity Analysis: FashionCo
40 | CONFIDENTIAL – ACG Cup 2015
Source: ACG Cup 2015 Case
Appendix

41. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Comparable Company Analysis – Comparable Transactions: Media
41 | CONFIDENTIAL – ACG Cup 2015
($ in millions)
Announced Target EV / EV / EBITDA
Transaction Date Enterprise Value Revenue EBITDA Revenue EBITDA Margin
Transaction 1 2014 $972 NA 11.7x NA $83 NA
Transaction 2 2014 690 NA NA NA NA NA
Transaction 3 2014 511 1.5x 8.9x $334 58 17.2%
Transaction 4 2014 350 NA NA NA NA NA
Transaction 5 2014 25 0.2x 6.9x 139 4 2.6%
Transaction 6 2014 6 0.5x 3.5x 13 2 14.2%
Transaction 7 2013 105 0.8x 8.9x 140 12 8.4%
Transaction 8 2013 76 1.9x NA 41 NA NA
Transaction 9 2013 82 0.5x 3.0x 162 27 16.7%
Transaction 10 2013 252 1.1x NA 239 NA NA
Transaction 11 2013 3 0.3x NA 12 NA NA
Transaction 12 2013 829 2.1x 8.0x 386 103 26.7%
Transaction 13 2013 201 NA NA NA NA NA
Transaction 14 2013 355 2.1x 11.3x 171 31 18.4%
Transaction 15 2013 108 NA 17.0x NA 6 NA
Transaction 16 2013 214 2.7x NA 80 NA NA
Transaction 17 2012 13 0.3x 8.7x 42 1 3.5%
Transaction 18 2012 86 1.0x 5.2x 85 16 19.5%
Transaction 19 2012 15 0.4x 8.6x 41 2 4.3%
Min $3 0.2x 3.0x
Max 972 2.7x 17.0x
Median 108 0.9x 8.6x
Mean 258 1.1x 8.5x
Appendix

42. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Comparable Company Analysis – Comparable Transactions: Apparel and Fashion
42 | CONFIDENTIAL – ACG Cup 2015
($ in millions)
Announced Target EV / EV / EBITDA
Transaction Date Enterprise Value Revenue EBITDA Revenue EBITDA Margin
Transaction 1 2014 $359 0.6x NA $633 NA NA
Transaction 2 2014 189 NA 13.0x NA $15 NA
Transaction 3 2013 2,201 0.6x 9.8x 3,848 226 5.9%
Transaction 4 2013 1,486 1.4x 11.1x 1,031 134 13.0%
Transaction 5 2013 615 2.2x 9.6x 285 64 22.5%
Transaction 6 2013 253 1.3x 13.2x 194 19 9.9%
Transaction 7 2013 2,274 0.9x 8.0x 2,503 285 11.4%
Transaction 8 2013 567 1.0x 13.1x 562 43 7.7%
Transaction 9 2013 143 1.9x 13.5x 74 11 14.3%
Transaction 10 2013 1,000 1.1x 9.8x 921 102 11.0%
Transaction 11 2013 628 1.3x 7.2x 481 87 18.1%
Transaction 12 2013 18 0.4x 9.8x 46 2 4.0%
Transaction 13 2013 548 0.7x 8.7x 742 63 8.5%
Transaction 14 2012 2,847 1.2x 9.9x 2,406 288 12.0%
Transaction 15 2012 88 0.4x 5.2x 200 17 8.5%
Transaction 16 2012 852 0.4x 10.2x 1,969 84 4.3%
Transaction 17 2012 1,809 0.5x 8.4x 3,505 216 6.2%
Transaction 18 2012 246 0.5x 10.6x 478 23 4.9%
Transaction 19 2012 553 4.4x 10.9x 125 51 40.5%
Transaction 20 2012 58 0.4x 5.5x 139 11 7.6%
Transaction 21 2011 60 0.6x 10.6x 103 6 5.5%
Transaction 22 2011 60 0.6x 10.6x 103 6 5.5%
Transaction 23 2011 357 0.3x NA 1,144 NA NA
Min $18 0.3x 5.2x
Max 2,847 4.4x 13.5x
Median 548 0.7x 9.9x
Mean 748 1.0x 9.9x
Appendix

43. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Comparable Public Companies: Media Industry
43 | CONFIDENTIAL – ACG Cup 2015
(figures in millions except per share amount)
Shares LTM LTM LTM LTM EBITDA Sales EBITDA
Company Ticker Stock Price Outstanding Debt Cash Sales EBITDA EBIT Earnings TEV Margin Multiple Multiple
Gannett Co., Inc. GCI 31.50 225.6 4,112.6 1,374.5 5,675.2 1,254.7 1,023.9 476.9 9,846.0 22.1% 1.7x 7.8x
Lee Enterprises, Incorporated LEE 3.73 53.7 815.0 17.8 657.1 160.2 112.9 (85.1) 997.6 24.4% 1.5x 6.2x
The McClatchy Company MNI 3.56 86.7 1,560.3 225.1 1,215.2 248.9 144.6 83.9 1,644.1 20.5% 1.4x 6.6x
The New York Times Company NYT 12.84 150.3 669.4 414.6 1,587.7 232.1 152.8 64.1 2,184.6 14.6% 1.4x 9.4x
Time Inc. TIME 22.59 109.0 1,376.0 325.0 3,352.0 510.0 352.0 8.0 3,512.6 15.2% 1.0x 6.9x
Min $997.6 1.0x 6.2x
Max $9,846.0 1.7x 9.4x
Median $2,184.6 1.4x 6.9x
Mean $3,637.0 1.4x 7.4x
Appendix

44. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Comparable Public Companies: Apparel and Fashion
44 | CONFIDENTIAL – ACG Cup 2015
(figures in millions except per share amount)
Shares LTM LTM LTM LTM EBITDA Sales EBITDA
Company Ticker Stock Price Outstanding Debt Cash Sales EBITDA EBIT Earnings TEV Margin Multiple Multiple
Ever-Glory International Group, Inc. EVK 6.19 14.8 55.4 25.0 422.3 27.0 20.8 12.8 121.9 6.4% 0.3x 4.5x
G-III Apparel Group, Ltd. GIII 79.35 22.4 71.2 21.5 1,931.7 152.4 135.9 80.2 1,825.9 7.9% 0.9x 12.0x
Oxford Industries Inc. OXM 61.25 16.5 108.5 6.4 951.8 121.9 85.3 45.9 1,110.8 12.8% 1.2x 9.1x
Perry Ellis International Inc. PERY 20.45 15.7 172.5 49.2 899.0 34.7 21.3 (25.1) 444.9 3.9% 0.5x 12.8x
PVH Corp. PVH 114.35 82.4 3,907.4 461.1 8,250.7 1,202.2 948.9 321.0 12,867.9 14.6% 1.6x 10.7x
V.F. Corporation VFC 67.68 431.1 2,083.5 496.5 11,993.4 2,047.8 1,775.2 1,293.1 30,763.9 17.1% 2.6x 15.0x
Min $121.9 0.3x 4.5x
Max $30,763.9 2.6x 15.0x
Median $1,468.3 1.1x 11.3x
Mean $7,855.9 1.2x 10.7x
Appendix

45. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
WACC Analysis: Media
45 | CONFIDENTIAL – ACG Cup 2015
Cost of DebtDebt
Market
Value of
Equity
Total
Capitalization
Debt to
Equity
Debt to Total
Capitalization
Gannett Co., Inc. $4,112.6 $7,107.9 $11,220.5 57.9% 36.7% 4.2%
Lee Enterprises, Incorporated 815.0 200.4 1,015.4 406.8% 80.3% 4.5%
The McClatchy Company 1,560.3 308.8 1,869.1 505.3% 83.5% 5.5%
The New York Times
Company 669.4 1,929.9 2,599.2 34.7% 25.8% 3.9%
Time Inc. 1,376.0 2,461.6 3,837.6 55.9% 35.9% 4.3%
Min 669.4 200.4 1,015.4 34.7% 25.8% 3.9%
Max 4,112.6 7,107.9 11,220.5 505.3% 83.5% 5.5%
Median $1,376.0 $1,929.9 $2,599.2 57.9% 36.7% 4.3%
Mean 1,706.7 2,401.7 4,108.4 212.1% 52.4% 4.5%
Appendix

46. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
WACC Analysis: Apparel
46 | CONFIDENTIAL – ACG Cup 2015
Debt
Market
Value of
Equity
Total
Capitalization
Debt to
Equity
Debt to Total
CapitalizationCost Of Debt
Ever-Glory International
Group, Inc. $55.4 $91.6 $146.9 60.5% 37.7% 2.6%
G-III Apparel Group, Ltd. 71.2 1,776.2 1,847.4 4.0% 3.9% 4.5%
Oxford Industries Inc. 108.5 1,008.7 1,117.2 10.8% 9.7% 5.5%
Perry Ellis International Inc. 172.5 321.6 494.1 53.6% 34.9% 4.3%
PVH Corp. 3,907.4 9,421.6 13,329.0 41.5% 29.3% 4.3%
V.F. Corporation 2,083.5 29,176.9 31,260.4 7.1% 6.7% 4.3%
Min 55.4 91.6 146.9 4.0% 3.9% 2.6%
Max 3,907.4 29,176.9 31,260.4 60.5% 37.7% 5.5%
Median $140.5 $1,392.5 $1,482.3 26.1% 19.5% 4.3%
Mean 1,066.4 6,966.1 8,032.5 29.6% 20.4% 4.3%
Appendix

47. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
Control Premium Analysis
47 | CONFIDENTIAL – ACG Cup 2015
Control Premium % Paid in Recent Transactions
Median
Control Number of
Premium Transactions
All Transactions
2014 26.2% 764
2013 20.7% 777
2012 20.6% 565
Manufacturing - Apparel
2014 34.9% 8
2013 11.0% 4
2012 32.8% 5
Printing, Publishing and Allied Industries
2014 15.2% 11
2013 12.1% 14
2012 18.2% 8
Appendix

48. Recommendation Company Industry QuantitativeIntro → AppendixSummary Alternatives
Impact
Capital Partners
 Refer to Assumptions and Financial Models Supplement
48 | CONFIDENTIAL – ACG Cup 2015
Assumptions and Financial Models
Appendix