2. Imagine partnering with an investment firm built on…
Character & Principles and staffed with competent and highly qualified…
Professionals dedicated to meeting your needs and who share a common…
Vision of delivering more than you ever believed was possible to achieve
4. About
Beaman Capital Group is a regional private equity and consulting firm that is
based in the heart of the City of Dallas, Texas. Built on a strong foundation of
financial theory and engineering principles, and with strong roots in private
equity, valuation design, and financial modeling; Beaman Capital Group selects
investments and advises on private market portfolios that capitalize on a variety
of economic, financial, fundamental, and technical metrics designed to maximize
its returns with reduced risk exposure.
Employing an industrial and entrepreneurial vision, Beaman Capital Group
strives to create value by creating applicable investment and risk management
strategies as well as process improvement through its consulting services.
5. Founding Partner
Michael J. Beaman is a graduate of Purdue University
where he earned his Bachelor of Science in Industrial
Management and Industrial Engineering and is a
successful entrepreneur and business owner.
After purchasing and building his corrugated
manufacturing firm (Quincy Resource Group) for over
fifteen years, he sold the business at industry high
valuations in a structured financing deal. His successful
tenure at Quincy Resource Group produced industry
Michael J. Beaman high margins and consistent year-over-year, double
Founding Partner
digit sales growth and profitability.
6. Senior Partner
Nathan Beaman is a Senior Partner at Beaman Capital
Group. A seasoned financial analyst and finance
professional, Mr. Beaman develops financial, valuation,
and cash flow investment models that capitalize on a
variety of economic, financial, fundamental, and technical
metrics designed to maximize investment returns. Mr.
Beaman is also a graduate of Texas Tech University’s
Rawls College of Business where he earned his Master of
Science in Finance and the University of Mississippi’s
Nathan C. Beaman
School of Business where he completed his MBA. He also
Senior Partner
graduated Magna Cum Laude with a Bachelor of Science
in Finance and was elected to Beta Gamma Sigma for his
academic achievements.
8. Products & Services
“Venture Capital & Private Equity” would be an investment in which capital is
provided to early stage companies in need of liquid equity capital for growth and
would normally be structured as a preferred stock security with a board seat for a
partner of the firm.
“Mezzanine Financing” investment slightly differs from traditional forms of
direct private equity financiers due to its preference for investments in debt-like
securities. The higher seniority in the investment’s debt structure above that of
pure equity (capital structure) may be attractive due to dividend payments and
equity warrants.
“Consulting Services” provides strategic financial modeling services to enhance
the growth, profitability, and risk management within the operational activities of
the firm’s clients. This also relates to the strategic innovative capabilities of the
client and its ability to continue growing through its competitive advantages and
core competencies through an improved operational structure.
13. Interest Rate Forecast
Rates Average Rates exp(-t*aver(r))
t=0 t=1 t=2 t=3 t=4 t=5 t=1 t=2 t=3 t=4 t=5 t=1 t=2 t=3 t=4 t=5
4.90% 5.50% 7.10% 6.80% 7.50% 9.20% 5.20% 5.83% 6.08% 6.36% 6.83% 0.94933 0.88988 0.83339 0.77538 0.71059
4.90% 4.40% 3.70% 5.60% 6.20% 6.90% 4.65% 4.33% 4.65% 4.96% 5.28% 0.95456 0.91698 0.86979 0.82004 0.76785
4.90% 3.10% 2.60% 5.10% 6.70% 4.80% 4.00% 3.53% 3.93% 4.48% 4.53% 0.96079 0.93177 0.88892 0.83594 0.79719
4.90% 5.00% 6.10% 6.90% 6.90% 6.00% 4.95% 5.33% 5.73% 5.96% 5.97% 0.95171 0.89883 0.84219 0.78789 0.74205
4.90% 4.40% 5.50% 6.10% 5.80% 6.50% 4.65% 4.93% 5.23% 5.34% 5.53% 0.95456 0.90604 0.85492 0.80767 0.75831
Year 1 Year 2 Year 3 Year 4 Year 5
A zero-coupon bond is a bond bought at a price discount that is less than its face value and is
repaid with the face value repaid at the time of maturity. However, it does not make periodic interest
Zero-bond prices (per $1 notional): $0.9542 $0.9087 $0.8578 $0.8054 $0.7552
payments, which in turn, creates an additional discount because there are no periodic cash flows.
The prices for the zero coupon bonds (Years 1 through Year 5) are highlighted on the right
Strike: 4.70%
PV along
t= 1 2 3 4 5 path Shown in the highlighted cell in the lower left is the solution for the price of a five-year interest rate cap on the short-term
0.008 0.021 0.018 0.022 0.032 0.1001 rate with a strike rate of $0.047. In this context, an interest rate cap is a derivative in which the buyer receives payments at
0.000 0.000 0.008 0.012 0.017 0.0370 the end of each period in which the interest rate exceeds the agreed strike price; this is commonly used by investors in the
0.000 0.000 0.004 0.017 0.001 0.0211 fixed income markets to hedge against interest rate fluctuations by using "caps" and "floors" thereby creating a fixed
0.003 0.013 0.019 0.017 0.010 0.0609 interest rate through a variable rate.
0.000 0.007 0.012 0.009 0.014 0.0418
Price of cap per $1 notional $ 0.0522
15. $1.83 $2.58 $2
Shares Outstanding 1,808
Valuation Average Growth Rate R (03-07) 7.61%
Average Growth Rate R (03-11) 5.58%
Average Growth Rate OI (03-07) 23.99%
Average Growth Rate OI (03-11) 13.69%
Inp uts
Current Earnings Per Share $2.56 Estimated Growth Rate 10.75%
Current Payout Ratio 23.44%
Cost of Equity 11.90% Yes
Current Price to OI Per Share 15301.62
Beta of Stock 1.39
Net Present Value $55.63
Risk-Free Rate 3.13%
Risk Premium 5.90% FACTOR SCORE
Expected Growth Rate = 10.75% Positive Return on Assets 1
Positive Operating Cash Flow 1
A ssump tio ns Increasing Return on Assets 1
Current Dividends Per Share $0.60 Quality of Earnings 1
11.90% Long-Term Debt v. Assets 0
Cost of Equity
Current Ratio 1
Expected Growth Rate 10.75%
Change in Shares 1
Increasing Gross Margins 1
Sto ck Price V aluatio n Increasing Asset Turnover 1
Gordon Growth Model Value $57.78
TOTAL 8
