Acquisition strategy

Doing Business in Portugal
PLANING TO CREATE VALUE
ACQUISITION PLAN

ACQUISITION PLAN

Acquisition Strategy

ACQUISITION PLAN

I. Introduction
II. Portugal Market Coffee
III. Political and Economic Context
IV. Our Acquisition Process
V. Market Data Companies
VI. Profile of Targets
VII. Acquisition Matrix
VIII.Recent Transaction
IX. Customers
X. Fees

ACQUISITION PLAN

I – Introduction

The café was introduced by the Portuguese in
Brazil in the eighteenth century. Later bring
coffee to Cape Verde e S. Tomé e Príncipe e
Angola

Portugal has companies with more 200 years
roasting tradition (Major in Lisbon, Porto, Braga,
Campo Maior)

In Portugal there are about 25 companies
operating in the field of coffee roasting

The turnover of the companies varies between
1M € and 130 M € per year, market valued in
370 M €

ACQUISITION PLAN

II - Portugal Market Coffee

Portugal import around 900 000 tones, of which about 100
thousand tons of coffee are roasted (data OIC6 2009)
Portugal process and export of approximately 170 tons (data
OIC 2009)
Characterization of consumption: 78% "out of home" 22% "in
the home" (data AICC 2010)
Fast moving market to coffee capsules, now represents
around 40% of turnover of the big players
Highly competitive sector market with constant innovation
Portuguese brands with good and external projection

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ACQUISITION PLAN

III - Political and Economic Context

Political stability promotes increased productivity European Union
and single currency facilitates expansion into new markets

Legislation on environmental rigorous, requiring constant
modernization and investment in green image with consumers

Increased competitiveness, for example, entry of foreign brands

Political support (income tax reduction, public investment, social
benefits)

Highly environment for monetary assistance granted by a
government politics to export

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ACQUISITION PLAN

IV- Our Acquisition Process

We prepare acquisition as an extension of your
1 company's growth strategy where the primary
purpose is not to grow big fast, but to do what you
want to do better.

We plan for opportunity long . A good business
arises by creating a priority of acquisition targets and
systematically cultivate relationships with high-priority
targets
2
We focus on small acquisitions initially before
setting your sights on larger targets and articulating
3 a growth strategy with your markets, customers
priorities

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ACQUISITION PLAN

IV - Our Acquisition Process
We define We work
Planning
critical alongside
values limits clients to
Transitional Research
which must develop a
support Investigate
not be clear view
exceeded. on their growth
opportunities
Target and needs.
Due Discret
We base Diligence contact
successful
deal through We strives
experience and a very with experience
well defined strategy Negotiate
Strategy and knowhow to do
grounded on forward Pressing big acquirers getting
looking value on acquisition
deals.
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ACQUISITION PLAN

IV - Our Acquisition Process

Our forward looking approach stars with a comprehensive analysis of the sector,
and companies and after all directly to the partners. This phase takes an active
period of 90 days, following which is made a report with paths for strategies and
setting buyer ambitious limits. The process is always looked as an extension of
the acquirer targets. It critical align the market and culture of buyer to assure a
successful merger. Due diligence actions are always bring to take advantages for
the buyer.
Our support to integration of the business, assure value supporting with focus on
the buyer targets, know-how, key people and in price!

Acquisition We develop
contingency
plans for when
acquisition
Plan B inevitably stray.

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ACQUISITION PLAN

V- Market Data Companies

Company Market Turnover
Brands
Brand Share Million Euros

Delta Delta 34% 126 €
Nestlé Sical 26% 96 €
Buondi; Nicola
Target not
37 €
strategic Nutricafés Nicola; Chave d´Ouro 10%
New Coffee Cafeeira, Caffécel,Bogani 7% 24 €
Segafredo 5% 19 €

Nandi 1% 4€
Target Tenco 1% 4€
strategic Bicafé 1% 5€
Others 15% 55 €

Portugal Market…….. 370 €

ACQUISITION PLAN

VI- Profile of Targets

Data: Key
Cafés xxxx Financials 2010 2009 2008 Average
Adress: Rua Fonte xxxxxº. 68-78
Sales 5.000 4.700 4.900 4.867
Postal Code: 4585-423 xxxxx
Depreciation 50 55 60 55
Phones: 2xxxxx520, 9xxxxxx30
General Manager: Ebtida 250 255 260 255
geral@xxxxxxo.mail.pt www.xxxxxxxo.pt
Ebit 677 310 689 559
Tax 93 24 100 72
Atividade: The company operates in importing, Profit 395 83 368 282
roasting, brewing coffee.

Buildings 2.692 2.706 2.732 2.710
The company has increased sales in 2011 will
reach about 23 million euros. The company has Equipements 1.454 1.703 1.206 1.454
been increasing its sales with the capsules for Stock 1.786 810 169 921
the office and home segment Debts 5.657 4.945 2.237 4.280
Equity 1.762 1.402 1.432 1.532

ACQUISITION PLAN

VI- Target Profile

Price: We evaluated the company on 7 times Entrerprise
7 X Ebtida 1750
EBITDA, less bank debt, resulting in 3 million. If Value
the assessment takes into account the company's Debt 5.657
EBITDA in 2011 to review tend to EUR 4 million.
Acquisition Cash -3907

Conclusion: We evaluated the company at around 3 million since has a debt of 5
million. We know that value for shareholders are not available for sale, but may be a
starting point for a negotiation.
There are three partners in the company among whom may be some cleavage and
may result where a willingness to sell.
We believe that this business model will grow much market caps, so the positioning of
the office area, coupled with a reasonable turnover, can justify paying an acquisition
premium.

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ACQUISITION PLAN

VII- - Acquisition Matrix

Critical New
Intereste Know Price/
Products Market Strategy
success Brand Being
Tecnical Grow
How
Suite
Money
factors Acquired Image need

Tenco
Bicafe
Nandi
Sotocal
FEB
Palmeira
Torefacção
Bracarense
Negrita
Lanhoso

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ACQUISITION PLAN

VIII - Recent Transactions
Dados:
Seller Acquisition 2007 – January
Acquisition price XXX Millions
Sales
Multiple Price Sales X YY Less
Company Debt

Buyer

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ACQUISITION PLAN

VIII - Recent Transactions

Seller

Sell

Dados:
Acquisition 2009
Acquisition price : XXXXXX
Multiple Price Sales X YZX
Less Debt

Buy Buyer

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ACQUISITION PLAN
X - Fees
Our service envisages an concerted action plan with everything necessary for a proper
acquisition: prior diagnosis, preparation of purchase , buy plan dossier, strategy for
best price acquisition , payment and financing conditions, target negotiation,
supporting and advise on transitional management.

We advise all aspects of the business purchase, due diligence , tax, legal and asset
management

In order to cover a portion of the initial expenses of documenting, investigations, travel,
meetings, develop the operation, as well as to obtain from the client a minimum
guarantee of their genuine interest in proceeding with the operation, we requests some
up-front provisions.

We work on a success fee basis, our process and methods strive to reduce the buyer
price and assure safety. Our business fee is 5% with a minimum value discuss
between the parties.

We will give support to the buyer during all necessary period for all legal and
management issues.

http://vendaempresas.p http://vendaempresas.com.br www.bolsaportugalnegocios.com
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ACQUISITION PLAN

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Acquisition strategy

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