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服貿準備好了嗎? 與國際接軌: 外資顧問的分析模式

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服貿準備好了嗎? 與國際接軌 …

服貿準備好了嗎? 與國際接軌
外資顧問的分析模式
Cross Straits Services Trade Agreement
Markis Capital

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  • 1. Teddy Tsai, Chief Executive OfficerTeddy Tsai, Chief Executive Officer 服貿準備好了嗎? 與國際接軌: 外資顧問的分析模式
  • 2. 2 Overview • Markis Capital is an independent investor relations consulting and boutique financial advisory firm. • Founded by a senior research analyst with substantial capital markets experience. Our team previously worked at market leading firms such as Merrill Lynch, Morgan Stanley, CLSA and others. • We combine a wealth of knowledge about local Asian markets and an understanding of global capital markets.We aim to introduce international best practices serviced with a local touch. • We work to develop training programs to improve the skills for IR professionals. InvestorRelationsResearchM&A
  • 3. 3 Background • Deputy Head of Research in Asia at DnB NOR in Singapore • Head of Research at CLSA Capital Partners’ shipping fund, Pacific Transportation Asia • Vice President at Merrill Lynch Equity Research, covered Asia Pacific Shipping,Taiwan non-tech, and Taiwan strategy. • Also served with Morgan Stanley, Insight Pacific Investment Research, and SECTORBASE.com • Education – Holds a Double Major BA in Economics and International Relations from UC San Diego – Diploma in Ship Finance from Lloyd’s Maritime Academy InvestorRelationsResearchM&A
  • 4. 4 Impact of Cross-Strait ServiceTrade Agreement • No restrictions on China’s consulting firms to provide services in Taiwan. • China’s consultants would be considered professionals, with minimal restrictions on labor laws. • Taiwan’s local consulting firms is familiar with theTaiwan market, but will face more international competitiveness. InvestorRelationsResearchM&A
  • 5. 5 What should Taiwanese students do? • Taiwanese students have knowledge (but not skills or expertise) to compete internationally. • Skills include: financial analysis, modeling, industry analysis, valuations, presentations, etc. • Expertise includes: deal experience, gathering data, analyzing information, and presenting insights. InvestorRelationsResearchM&A Expertise 專業經驗 Skills 技能 Knowledge 知識
  • 6. 6 Our Services • Strategic Advisory • Content Development • Event Management • Market Intelligence 投資人關係諮詢服務 Investor Relations Consulting • M&A Advisory • Fairness Opinion,Valuation Reports • Due Diligence, Feasibility Studies • Financial Modeling, Model Review 企業併購暨策略諮詢 M&A and Strategic Advisory • Markis Insights Newsletter • Capital Market Reports • Scorecard & Surveys • Index Research, Benchmarking Audits 投資市場資訊研究 Research Services • Investment Banking Seminar • M&A Advisor LeadershipWorkshops • Custom Training Programs 瑪亞學院培訓課程 Markis Academy InvestorRelationsResearchM&A
  • 7. 7 IR- Improve CompanyValue Company value is determined not only by financial performance.We estimate that 20-40% of a company’s value attributed by investors is determined by non-financial factors. This 20-40% includes: • Consistency in information • Transparency and disclosure levels • Level of interaction between management and investors • Corporate reputation • … and others. Proper investor relationship management can improve a company’s transparency and boost Investors’ confidences and help reflect a Company’s true value. InvestorRelations
  • 8. 8 Investor Relation Activities Strategic Advisory • Planning and development of IR departments • Evaluate and shape the investment message • Integrated communication and disclosure to enhance credibility and transparency • Analyst surveys, perception studies Market Intelligence • Analyze research reports • Collect trading statistics • Analyze shareholder structure • Identify capital market trends • Peer comparison Content development • Presentation materials development • Website structure, content, and vendor selection • Earnings release revisions and drafting • Conference call scripts • Sustainability report drafting and development Events and Engagement • IR forum, investor visits • Disclosure policy and execution • Analyst and investor relationship management • Strategically target and identify investors InvestorRelations
  • 9. 9 Shareholder Targeting Study 9 • Summary Statistics • Total Equity Assets Under Management (by region) • Opportunities & Risks – shares held and trends • Segmentation of investors by city, style, current position, • Trends – sector trend, peer risk, cost basis, turnover, concentration • Comparative valuations • Investors by location, sector assets/trends, peer assets, cost basis, share trend • Top shareholders, by location, style, turnover, tiering • Top buyers, top sellers • Plan • Roadshow schedule, tiering of investors, potential holdings & characteristics InvestorRelations
  • 10. InvestorRelations
  • 11. InvestorRelations
  • 12. 12 InvestorRelations Market Intelligence – Localized Reports
  • 13. 13 Try to find the potential investors InvestorRelations
  • 14. 14 股票交易量建議 InvestorRelations
  • 15. 15 Capital Markets Update 15 • Funding Environment • DealTypes – IPOs, M&A, Secondary, Debt • Total Issuances by Industry • Market Summary Table – index performance table • YTD deals by pricing vs. backlog, pricing performance • Economic Activity Calendar • Indicator, period, expectation, result • Daily Market Update • Expected Deals, Filings, etc. InvestorRelations
  • 16. 16 Understanding the work of analysts • How sell-side / buy-side analysts make an investment decision • How portfolio managers view the investor relations role • What information and techniques can help you to enhance effectiveness of communications/information to sell side • Relationship to the sell-side • Trends and issues of the institutional marketplace InvestorRelations
  • 17. 17 Flow of Funds Report (Market) • Top Holders (Country, Style,Turnover,Assets,Value, Change, % of portfolio, % portfolio change) • Top Buyers,Top Sellers • Charts – Most bought/sold sectors ($m change) • Top 5 bought/sold stock, industry, $ change • Institutional investment by region (quarterly) • Total, net change • Institutional investment by style (quarterly) • Total, net change InvestorRelations
  • 18. 18 Media / Analyst Monitoring • Report Details – headline, overview, earnings change, model drivers, etc. • Key News Highlights / Summary • Media Monitoring • News mentions of peers • News mentioned by publication type • News mentioned by region / country InvestorRelations
  • 19. 19 Media / Analyst Monitoring InvestorRelations
  • 20. 20 The working process Data Collection Analysis Report & Presentation • Define scope of industry • Identify key players • Determine size metric to use (Revenues, Market Cap, Net Income, Capacity, etc.) • Collect annual historical data for key players • Industry Drivers & Inhibitors • Demand Forecasting • Estimating Supply • P/E, P/B, EV/EBITDA, Efficiency, Margins • Ratios vs. peers • Risk Assessment • Effectively communicates investment message • Persuasive presentation style • Handle direct questioning Research
  • 21. 21 Industry Drivers & Inhibitors • Technology Considerations • Whether or not the innovation will be successful. • Whether or not competition from new technologies will supplant the old technology. • What are the industry drivers, technical barriers? • Industry Specific Considerations • Competition • Supply Drivers • Demand Drivers • Company Specific Considerations • Five Forces • SWOT Analysis Research
  • 22. 22 Macroeconomics Data Research
  • 23. 23 Industry Data Research
  • 24. 24 Types of Financial Models • Purpose: Estimating Earnings • Key Components: • Sales Forecast • IS, BS, CF • Ratios,Valuations • Purpose: Decision Making • Key Components: – Assumptions – DCF – Interest Rates – Returns Analysis (IRR) • Earnings (Operating) Model • Capital Budgeting Model Research
  • 25. 25 Earnings Model INDUSTRY INCOME STATEMENT CO. TSEC:2330 TSEC Taiwan Semiconductor Manufacturing Company Limited > Income Statement > Standardized > Detailed In millions of TWD (except per share items) For the fiscal year ending: 2005/12/31 2006/12/31 2007/12/31 2008/12/31 2009/12/31 2010/12/31 2011/12/31 2012/12/31 2013/12/31 Filing Currency TWD TWD TWD TWD TWD TWD TWD TWD TWD Revenue 266,565.1 317,407.2 322,630.6 333,157.7 295,742.2 419,537.9 427,080.6 506,745.3 597,024.2 Other Revenue 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Revenue (Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed)(Capability Needed) Total Revenue 266,565.1 317,407.2 322,630.6 333,157.7 295,742.2 419,537.9 427,080.6 506,745.3 597,024.2 Cost Of Goods Sold 148,362.2 161,597.1 180,280.4 191,408.1 166,413.6 212,484.3 232,937.4 262,592.5 315,642.5 Gross Profit 118,202.9 155,810.1 142,350.2 141,749.6 129,328.6 207,053.6 194,143.2 244,152.8 281,381.7 Selling General & Admin Exp. 13,217.8 12,469.0 12,682.0 15,833.3 15,773.3 18,171.6 18,681.9 22,129.2 23,387.0 R & D Exp. 14,016.5 16,076.4 17,946.3 21,480.9 21,593.4 29,706.7 33,829.9 40,387.1 47,952.0 Depreciation & Amort. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other Operating Expense/(Income) 0.0 0.0 0.0 0.0 0.0 0.0 74.0 30.0 22.6 Other Operating Exp., Total 27,234.3 28,545.4 30,628.3 37,314.2 37,366.7 47,878.3 52,585.8 62,546.3 71,361.6 Operating Income 90,968.6 127,264.7 111,721.9 104,435.4 91,961.9 159,175.3 141,557.4 181,606.5 210,020.1 Interest Expense -1,413.4 -890.6 -842.2 -615.0 -391.5 -425.4 -626.7 -1,020.4 -2,646.8 Interest and Invest. Income 2,806.2 4,542.1 5,651.7 5,373.8 2,600.9 1,665.2 1,479.5 1,716.1 2,342.1 Net Interest Exp. 1,392.8 3,651.5 4,809.5 4,758.8 2,209.4 1,239.8 852.8 695.7 -304.7 Income/(Loss) from Affiliates 1,433.2 2,347.2 2,507.9 701.5 46.0 2,298.2 897.6 2,073.1 3,806.8 Currency Exchange Gains (Loss) 2,610.0 -400.9 143.9 146.7 -32.3 221.6 321.8 330.0 482.2 Other Non-Operating Inc. (Exp.) 680.2 1,232.0 1,491.8 1,528.8 778.4 859.3 901.8 1,090.7 -4,416.0 EBT Excl. Unusual Items 97,084.8 134,094.5 120,675.0 111,571.2 94,963.4 163,794.2 144,531.4 185,796.0 209,588.4 Impairment of Goodwill 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Gain (Loss) On Sale Of Invest. -128.9 -146.2 820.5 -839.1 -897.2 577.0 -32.3 -3,690.5 6,030.7 Gain (Loss) On Sale Of Assets 282.7 179.7 170.0 -0.6 -68.5 -849.3 -200.7 0.1 342.4 Asset Writedown 0.0 0.0 0.0 -210.5 0.0 -0.3 -98.0 -444.5 0.0 Legal Settlements 964.7 979.2 -23.5 951.2 1,464.9 6,939.8 947.3 0.0 0.0 Other Unusual Items -3,940.0 -1,745.0 0.0 0.0 0.0 -191.0 0.0 0.0 0.0 EBT Incl. Unusual Items 94,263.3 133,362.2 121,642.0 111,472.2 95,462.6 170,270.4 145,147.7 181,661.1 215,961.5 Income Tax Expense 630.6 7,773.7 11,709.6 10,949.0 5,996.4 7,988.5 10,694.4 22,374.7 32,111.8 Earnings from Cont. Ops. 93,632.7 125,588.5 109,932.4 100,523.2 89,466.2 162,281.9 134,453.3 159,286.4 183,849.7 Earnings of Discontinued Ops. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Extraord. Item & Account. Change 0.0 1,606.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Net Income to Company 93,632.7 127,195.2 109,932.4 100,523.2 89,466.2 162,281.9 134,453.3 159,286.4 183,849.7 Minority Int. in Earnings -57.7 -185.5 -755.3 -590.0 -248.4 -676.9 -252.0 194.4 127.9 Net Income 93,575.0 127,009.7 109,177.1 99,933.2 89,217.8 161,605.0 134,201.3 159,480.8 183,977.6 Pref. Dividends and Other Adj. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NI to Common Incl Extra Items 93,575.0 127,009.7 109,177.1 99,933.2 89,217.8 161,605.0 134,201.3 159,480.8 183,977.6 NI to Common Excl. Extra Items 93,575.0 125,403.0 109,177.1 99,933.2 89,217.8 161,605.0 134,201.3 159,480.8 183,977.6
  • 26. 26 Dupont Analysis DUPONT ANALYSIS – MCGRAW HILL FINANCIAL, INC. Fiscal Year Ended, LTM 2004/12/31 2005/12/31 2006/12/31 2007/12/31 2008/12/31 2009/12/31 2010/12/31 2011/12/31 2012/12/31 2013/12/31 2013/12/31 Net Income 755.8 844.3 882.2 1,013.6 799.5 731.0 828.0 911.0 437.0 1,376.0 1,376.0 Sales 5,250.5 6,003.6 6,255.1 6,772.3 6,355.1 5,870.0 3,639.0 3,954.0 4,450.0 4,875.0 4,875.0 Net Profit Margin 14.4% 14.1% 14.1% 15.0% 12.6% 12.5% 22.8% 23.0% 9.8% 28.2% 28.2% Net Income 755.8 844.3 882.2 1,013.6 799.5 731.0 828.0 911.0 437.0 1,376.0 1,376.0 EBT 1,168.9 1,360.0 1,404.8 1,636.3 1,299.1 1,182.0 943.0 1,000.0 1,130.0 1,346.0 1,346.0 Tax Burden (1 - tax rate) 64.7% 62.1% 62.8% 61.9% 61.5% 61.8% 87.8% 91.1% 38.7% 102.2% 102.2% EBT 1,168.9 1,360.0 1,404.8 1,636.3 1,299.1 1,182.0 943.0 1,000.0 1,130.0 1,346.0 1,346.0 EBIT 1,174.7 1,387.1 1,450.0 1,703.3 1,448.1 1,277.0 1,030.0 1,074.0 1,385.0 1,612.0 1,612.0 Interest Burden 99.5% 98.0% 96.9% 96.1% 89.7% 92.6% 91.6% 93.1% 81.6% 83.5% 83.5% EBIT 1,174.7 1,387.1 1,450.0 1,703.3 1,448.1 1,277.0 1,030.0 1,074.0 1,385.0 1,612.0 1,612.0 Total Revenue 5,250.5 6,003.6 6,255.1 6,772.3 6,355.1 5,870.0 3,639.0 3,954.0 4,450.0 4,875.0 4,875.0 EBIT Margin 22.4% 23.1% 23.2% 25.2% 22.8% 21.8% 28.3% 27.2% 31.1% 33.1% 33.1% Sales 5,250.5 6,003.6 6,255.1 6,772.3 6,355.1 5,870.0 3,639.0 3,954.0 4,450.0 4,875.0 4,875.0 Total Assets 5,841.3 6,395.8 6,042.9 6,391.4 6,080.1 6,475.3 7,047.0 6,620.0 7,052.0 6,061.0 6,061.0 Asset Turnover 0.9x 0.9x 1.0x 1.1x 1.0x 0.9x 0.5x 0.6x 0.6x 0.8x 0.8x Total Assets 5,841.3 6,395.8 6,042.9 6,391.4 6,080.1 6,475.3 7,047.0 6,620.0 7,052.0 6,061.0 6,061.0 Shareholder's Equity 2,984.5 3,113.1 2,679.6 1,606.7 1,352.9 1,929.2 2,292.0 1,584.0 1,650.0 2,154.0 2,154.0 Leverage Factor 2.0x 2.1x 2.3x 4.0x 4.5x 3.4x 3.1x 4.2x 4.3x 2.8x 2.8x Return on Equity 25.3% 27.1% 32.9% 63.1% 59.1% 37.9% 36.1% 57.5% 26.5% 63.9% 63.9% Return on Equity - 5 Step 25.3% 27.1% 32.9% 63.1% 59.1% 37.9% 36.1% 57.5% 26.5% 63.9% 63.9%
  • 27. 27 Types of Financial Models • Purpose: Estimating Supply, Demand, Prices • Key Components: • Supply • Demand (Market Size) • Price Trends • Factors • Purpose: Pre & Post IPOValuations • Key Components: – Assumptions – Pro-Forma IS, BS, CF – Shareholder Structure – Valuations • Industry Models • IPO Modeling Research
  • 28. 28 Using database to build the model Research
  • 29. 29 Valuations • DCF • Present value of equity • WACC • Projected cash flows • Sensitivity Analysis • Comp Sheet • PE PB Band • Peer PE comparison • AbsoluteValuation • RelativeValuation Research
  • 30. 30 ExcelTemplate
  • 31. 31 Comp Sheet COMPARABLE COMPANY ANALYSIS (In USD millions, except per share data) Stock Price Current as % of 52-Week (%) Shares Market Enterprise Revenue EBITDA EPS Ticker Trading Data and Size 4/17/14 High Low Out. Cap Value LTM CY+1 LTM CY+1 LTM CY+1 NYSE:HPQ Hewlett-Packard Company 32.49 95.8 170.4 1,895.1 61,572.5 70,496.5 112,093.0 110,739.2 13,180.0 13,677.3 2.73 3.72 NasdaqGS:AAPLApple Inc. 519.01 90.2 134.8 892.6 463,244.5 439,439.5 173,992.0 182,428.5 56,565.0 59,103.0 40.23 43.22 NasdaqGS:MSFTMicrosoft Corporation 40.40 97.0 141.8 8,300.7 335,349.2 276,052.2 83,433.0 87,870.4 31,828.0 32,284.7 2.70 2.75 NYSE:EMC EMC Corporation 26.70 94.5 124.5 2,027.4 54,131.5 52,111.5 23,222.0 24,507.3 5,612.0 7,461.3 1.33 1.94 NasdaqGS:CTSHCognizant Technology Solutions Corporation 49.78 92.2 163.4 607.4 30,237.6 26,490.1 8,843.2 10,403.5 1,857.8 2,124.5 2.02 2.52 NYSE:TDC Teradata Corporation 47.08 71.4 120.2 159.6 7,511.6 7,090.6 2,692.0 2,828.8 622.0 785.3 2.27 2.92 TSE:6702 Fujitsu Limited 5.89 92.1 172.3 2,069.2 12,197.2 17,016.2 43,880.2 0.0 2,979.9 0.0 0.09 0.00 NYSE:ACN Accenture plc 79.11 92.1 114.7 633.1 50,082.1 46,940.0 28,774.2 30,036.6 4,423.4 4,892.7 4.07 4.62 Max 519.01 97.0 172.3 8,300.7 463,244.5 439,439.5 173,992.0 182,428.5 56,565.0 59,103.0 40.23 43.22 Median 43.74 92.2 138.3 1,393.8 52,106.8 49,525.8 36,327.2 27,272.0 5,017.7 6,177.0 2.48 2.84 Min 5.89 71.4 114.7 159.6 7,511.6 7,090.6 2,692.0 0.0 622.0 0.0 0.09 0.00 Mean 100.06 90.7 142.7 2,073.1 126,790.8 116,954.6 59,616.2 56,101.8 14,633.5 15,041.1 6.93 7.71 NYSE:IBM International Business Machines Corporation 196.40 92.7 114.1 1,041.3 204,519.4 238,928.4 98,827.0 99,248.3 24,239.0 27,673.8 14.63 17.83 Total Debt/ Net Debt/ EBITDA/ (EBITDA-Capex) Total Debt/ Total Debt/ TEV/Revenue TEV/EBITDA P/E Ticker Leverage and Trading Multiples LTM EBITDA LTM EBITDA Interest /Interest Tot. Equity (%) Total Cap (%) LTM CY+1 LTM CY+1 LTM CY+1 NYSE:HPQ Hewlett-Packard Company 1.9x 0.6x 32.7x 23.9x 87.8 46.7 0.6x 0.6x 5.3x 5.2x 11.9x 8.7x NasdaqGS:AAPLApple Inc. 0.3 NM 257.1 221.5 13.1 11.6 2.5 2.4 7.8 7.5 12.9 12.0 NasdaqGS:MSFTMicrosoft Corporation 0.7 NM 66.0 54.2 27.9 21.8 3.3 3.1 8.7 8.6 15.0 14.7 NYSE:EMC EMC Corporation 1.3 NM 36.0 29.9 30.1 23.1 2.2 2.1 9.8 7.0 20.0 13.8 NasdaqGS:CTSHCognizant Technology Solutions Corporation 0.0 NM 0.0 0.0 0.0 0.0 3.0 2.5 14.3 12.5 24.7 19.7 NYSE:TDC Teradata Corporation 0.4 NM 155.5 140.5 14.8 12.9 2.6 2.5 11.4 9.0 20.7 16.1 TSE:6702 Fujitsu Limited 2.4 1.2 135.4 86.2 89.3 47.2 0.4 NA 5.4 4.9 63.4 14.4 NYSE:ACN Accenture plc 0.0 NM 319.4 295.7 0.5 0.5 1.6 1.6 10.6 9.6 19.4 17.1 Max 2.4x 1.2x 319.4x 295.7x 89.3 47.2 3.3x 3.1x 14.3x 12.5x 63.4x 19.7x Median 0.6 0.9 100.7 70.2 21.3 17.3 2.4 2.4 9.2 8.0 19.7 14.5 Min 0.0 0.6 0.0 0.0 0.0 0.0 0.4 0.6 5.3 4.9 11.9 8.7 Mean 0.9 0.9 125.3 106.5 32.9 20.5 2.0 2.1 9.2 8.0 23.5 14.6 NYSE:IBM International Business Machines Corporation 1.8x 1.4x 58.7x 49.4x 262.7 72.4 2.4x 2.4x 9.6x 8.4x 13.4x 11.0x
  • 32. 32 Overview Small businesses are the foundation of Taiwan's economy. However, international investment banks only have the capacity to service the largest companies in Taiwan. Although Taiwan financial holding companies have advisory services, these are not available to small & medium sized companies in Taiwan. M&A Advisory Solution We have developed a structured, international-standard training program, and an apprentice-type relationship with experienced, well-connected advisers. Our platform provides a mix of senior level advice and in-depth transaction support Service Offerings • Fairness Opinions/Valuation Reports • Model Audit / Review • Financial Due Diligence M&A • Feasibility Studies • Strategic & Financial Advisory • Investment Proposals & Evaluation
  • 33. 33 M&A Market Analysis M&A
  • 34. 34 Company screening M&A
  • 35. 35 PE/LBO Modeling • Purpose:Transaction Modeling • Key Components: – Assumptions – Capital Structure / Sources & Uses – Exit Analysis – Pro-Forma IS, BS, CF • Purpose:Transaction Modeling • Key Components: – Assumptions – Sources & Uses – Pro-Forma IS, BS – DCF – Purchase Price Ratio Analysis Types of Financial Models M&A Merger Models
  • 36. 36 Simple LBO Model Dashboard ($ in millions, except per share data) Summary Sources & Uses of Funds Calendarization / Timing Valuation % of Mult. of Last FYE 12/31/11 Current stock price $12.81 Balance Total LTM EBITDA MRQ date 3/31/12 Offer premium to market 25.0% Market date 5/17/12 Offer price per share $16.01 Excess cash $82.2 9.8% 0.63x Close date 12/31/12 Liquidation of options 14.1 1.7% 0.11x Next FYE after transaction close 12/31/13 Basic shares outstanding (BSO) 34.922 Revolver – – – ( + ) In-the-money options liquidated 1.288 Term loan - A 50.0 6.0% 0.39x Exit Assumptions ( + ) In-the-money convertible shares – Term loan - B – – – Valuation method (1=EBITDA, 2=GAAP P/E) 1 Fully diluted shares outstanding (FDSO) 36.210 Senior note 100.0 12.0% 0.77x Exit year 4 ( x ) Offer price per share $16.01 Subordinated note 50.0 6.0% 0.39x Exit EBITDA multiple 5.0x Equity purchase price $579.8 Mezzanine – – – Exit P/E multiple 14.0x ( – ) Proceeds from liquidation of options (14.1) Seller note – – – Purchase price 565.8 Convertible bond – – – Other Switches / Assumptions Non-convertible debt – [Debt 8] – – – Minimum cash balance $100.0 Convertible debt 230.0 Preferred stock - A 10.0 1.2% 0.08x Tax rate 35.0% Minority interest – Preferred stock - B – – – Average interest? No Total debt and minority interest 230.0 Sponsor equity 509.7 61.1% 3.93x ( – ) Cash & cash equivalents (182.2) Management equity 10.0 1.2% 0.08x Model Checks ( + ) Net debt 47.8 Tax refund 8.7 1.0% 0.07x Sources and uses balance ok Pro forma enterprise value $627.6 Total sources $834.7 100.0% 6.43x Balance sheet balances ok Revolver limit exceeded ok Purchase Price Allocation Equity purchase price $579.8 69.5% 4.47x Error message Purchase price $565.8 Refinance debt 230.0 27.6% 1.77x ( – ) Book value (127.9) Fund cash balance – – – Excess purchase price to allocate 437.8 Financing fees 6.8 0.8% 0.05x Write off existing goodwill (61.1) Transaction costs 18.1 2.2% 0.14x Fair value adjustments 124.5 Total uses $834.7 100.0% 6.43x Transaction DTL (43.6) Transaction DTA – Scenarios ( – ) Book value adjustments 19.8 Financing case – LBO C 6 Excess purchase price after allocation 418.0 ( + ) Bargain purchase gain – Fair Value Adjustments Goodwill created $418.0 Excess purch. price allocated to identifiable intangibles (%) 25.0% Multiples Book Value Fair Value Fair Value DTA DTL Depr. / Amrt. Metric Multiple Asset / Liability Asset? at Close at Close Mark Created Created Period (yrs) LTM Sales $438.0 1.43x PP&E Yes $191.0 $206.0 $15.0 – $5.3 7.0 FY12 PF sales 464.3 1.35x Identifiable intangibles Yes – 109.5 109.5 – 38.3 5.0 FY13 PF sales 492.2 1.28x [Asset 3] Yes – – – – – – [Liability 1] No – – – – – – LTM EBITDA 129.8 4.84x [Liability 2] No – – – – – – FY12 PF EBITDA 138.7 4.53x [Liability 3] No – – – – – – FY13 PF EBITDA 147.0 4.27x Total – $43.6
  • 37. 37 LBO Modeling – Key Components 37 • Sources & Uses • Purchase Price Allocation • Debt & Interest Expenses • Financing &Transaction Costs • Tax Impact • Transaction Impact – FairValue Adjustments • DCF /WACC • Returns Analysis M&A
  • 38. 38 ExcelTemplate M&A
  • 39. 39 Summary • For Investor Relations • Shareholder analysis and targeting is important • Capital markets data helps to update senior executives • Monitoring of analyst views & media helps to evaluate performance • For Investment Research • Industry analysis helps to build views • Financial analysis helps to quantify trends • Valuation points to action items • For Financial Advisory • Market analysis helps to identify transaction activity • Screening helps to identify opportunities • Modeling helps to structure deals
  • 40. 蔡鴻德 (Teddy H. Tsai) 董事暨執行長 (Director & CEO) teddy.tsai@markis.asia Any Questions? 40 瑪亞投資有限公司

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