fundamental workbook for investment banking

1. Potential Acquisitions
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2. Potential Acquisitions
• Given Aardvark’s large cash balance, it could make a wide variety of
acquisitions – ranging from small “tuck-in” deals to acquire technology
and IP to larger deals driven by customer or market share acquisition
• Tier 1 Potential Acquisitions
– “Tier 1” acquisition candidates are worth over $1 billion and would
significantly boost Aardvark’s market share or result in substantial revenue or
cost synergies
– Leading candidates include ARM, for its chipset technology and integration
with Aardvark’s existing products, and Research in Motion – to capture
additional share in the corporate smartphone market
• Tier 2 Potential Acquisitions
– “Tier 2” acquisition candidates are worth less than $1 billion and would
enhance Aardvark’s core technology and fill in gaps in existing products
– Potential acquisitions include specialized chipset and semiconductor
companies as well as Web 2.0, social media, and mobile software companies
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3. Potential Acquisition
Candidates
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Tier 1 Acquisition Candidates
Tier 2 Acquisition Candidates

4. Company Profile: ARM
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ARM Holdings
Headquarters: Cambridge, UK
Employees: 1700
Founded: 1990
Financial Information:
Market Cap: $2.5B
Cash: $204M
2009 Revenue: $490M
2009 EPS: $7.85
2010E Revenue: $531M
2010E EPS: $10.97
ARM Holdings is a supplier of semiconductor
intellectual property and components of digital
electronic products. It designs and licenses intellectual
property rather than manufacturing and selling
semiconductor chips, and it licenses its IP to a wide
network of hardware, mobile, and networking
companies. It also provides tools to optimize system-
on-chip designs.
Products:
•Processors – ARM provides 32-bit embedded
microprocessors based on a common architecture that
delivers high-performance, power efficiency, and
reduced system cost.
•System IP – Serves as the connection between
processors, memory, and peripherals to ensure
optimum performance.
•Multimedia – ARM provides graphics processors that
enable embedded graphics, audio, and video
applications.
•Physical IP – Provides SoC integrated circuits and logic,
embedded memory, and interface IP.
•Tools – ARM subsidiaries provide compilers,
debuggers, simulators, and other optimization tools for
Management Team:
Warren East CEO
Tudor Brown President
Graham Budd COO
Mike Muller CTO
Tim Score CFO
John Cornish EVP, Systems
Ian Drew EVP, Marketing
Antonio Viana EVP, Sales
Key Partners:
Electronic Arts, LSI Logic, Microsoft,
National Semiconductor, Nokia,
NVIDIA, Rambus, Real Networks,
Samsung, and Toshiba.

5. Company Profile: Research In Motion
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Research In Motion
Headquarters: Waterloo, ON
Employees: 12,000
Founded: 1984
Financial Information:
Market Cap: $36B
Cash: $2.5B
2009 Revenue: $13B
2009 EPS: $3.70
2010E Revenue: $17B
2010E EPS: $5.03
Research In Motion designs the BlackBerry smartphone
and creates solutions for the worldwide mobile
communications market, including a variety of software
for the BlackBerry device. In addition to its line of
BlackBerry devices, the company also provides
enterprise server software to support businesses using
the device.
Products:
•BlackBerry Pearl 3G – Provides Trackpad and dedicated
media keys as well as SureType technology and 3G
network support.
•BlackBerry Bold – Provides extended battery life as
well as GPS, Wi-Fi, and 3G network support.
•BlackBerry Curve 8500 – Includes Trackpad and
dedicated media keys, easy media sharing, and 2.0 MP
camera.
•BlackBerry Tour 9630 – Provides GPS, worldwide
compatibility, and 3.2 MP camera.
•BlackBerry Storm – Features Wi-Fi, SurePress
technology, and 3G network support.
•BlackBerry Curve 8900 – Features thin, lightweight
design as well as GPS and Wi-Fi support and 3.2 MP
camera.
Management Team:
Jim Balsillie Co-CEO
Mike Lazaridis Co-CEO
Don Morrison COO
Robin Bienfait CIO
Brian Bidulka CFO
David Yach CTO
Key Partners:
AT&T, Brightstar, Digital China, GPXS,
Hewlett-Packard, IBM, Skype, Sprint,
Tata Indicom, T-Mobile, Verizon,
Virgin, and Vodafone,

6. Process Recommendations
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7. Key Recommendations
• We recommend engaging in targeted discussions with the Tier 1 acquisition
candidates and assessing their receptiveness to M&A discussions
• At the same time, Goldman Stanley will reach out to Tier 2 candidates and
introduce Aardvark as a potential acquirer
• M&A process with Tier 1 candidates will take significantly longer due to the scale
of the companies, so we recommend conducting both processes simultaneously
• Depending on responses from Tier 1 and Tier 2 candidates, Goldman Stanley and
Aardvark may do additional research to determine other potential acquisitions and
then approach them
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8. Process Recommendation
Broad
Marketing

9. Appendix
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10. Aardvark Projected Income Statement
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11. Aardvark Comparable Public
Companies
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12. Aardvark DCF Analysis – WACC
Calculation
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