15th Annual William Blair Case Competition

OscarArenas, B.S,
Finance, Economics
Class of 2025
MickeyFanella,B.S,
Finance, Accountancy
Class of 2025
RobertNahigian, B.S,
Finance, Accountancy
Class of 2025
November10, 2022
Talawanda Turbines
Ian Thorstenson, B.S,
Finance, Economics
Class of 2025

2
Team
Oscar Arenas
jacqueoi@miamioh.edu
Securities Industry Essentials (SIE),
FMC® Level II (Adventis) certified
Mickey Fanella
fanellm2@miamioh.edu
Bloomberg Market Concepts,
Robert Nahigian
nahigirc@miamioh.edu
Ian Thorstenson
thorstir@miamioh.edu
Bank Secrecy Act (BSA) certified

3
Agenda
SECTIONI
Executive Summary
SECTIONII
CompanyOverview
SECTIONIII
Industry Overview
SECTIONIV
Valuation
SECTION V
Strategic Options
SECTION VI
Appendix

5
Strategic Alternatives for Talawanda Turbines
Options Pros Cons Target Buyer Consideration
OrganicGrowth
Sale to StrategicAcquirer
Sale to Financial Sponsor
• Maintain100% control of
all decisions
• Nottakingadvantage of
M&Amarket
• Potential premium from
synergies
• Potential acquirerpool
expansion
• Better brand recognition
• Risk disclosureto
industry competitors
• Reduceddecision-
makingcapabilities
• N/A
• Industry experts can increase
marketpresenceviastrategic
synergies
• Premiums andcostreductions
from synergies
• Possibleformanagementto
stay incontrol
• Potential new growth
opportunities withfunding
• Risk of losinglong-term
employees
• Probablesynergies infirms’
other investments
• Lookingforstrongmanagement
withcontinuedvision
IPO
• Raises capital
• Keeps equity stakefor
future upside
• Less firm confidentiality
• FallingIPO activity due
to highmarketvolatility
• N/A
Talawanda Turbines
IPO
Sale to Strategic Acquirer Sale to Financial Sponsor
Organic Growth
Source: William Blair
Note: Dotted lines denote alternatives William Blair suggests Talawanda pursue

6
$450 $500 $550 $600 $650 $700 $750 $800
Leveraged Buyout (11.2x - 11.6x)
Precedent Transactions (10.7x - 11.8x)
Comparable Companies (10.4x - 11.5x)
DCF - EBITDA Exit Multiple (10.7x - 11.1x)
DCF - Perpetuity Growth Rate (2.5%)
Recommendation
Valuation Analysis
• Talawanda Turbines isaleadingdesignerandmanufacturerof
industrial fans,criticalexhaustsystems, andblowersforOEM
applicationsacrossdiverseandresilientendmarkets
• Operates ~200,000 sqftof manufacturingspaceandboasts
unmatchedleadtimes withhighrecurring revenues
• Attractivefinancialprofilewithrobustmarginsandhighgrowth
• 2022ERevenue:$350MM
• 2022EEBITDA: $53MM
Compelling Story
Executive Summary
Sell-SideAdvisory
Source: Company Filings, Team Projections
Note: Figures in $MM USD
Potential Financial Sponsors
Potential Strategic Acquirers Potential Acquisitions
• Recommendinganearterm saleto a strategicbuyerorfinancial
sponsor
• Range: ~$590MM-$670MM
• Recommendedstrategicbuyers canleverageeconomies of scale
and scope, andexpandmarketpresencewithpriorexperience
integratingcompanies into theirHVACorcoolingplatforms
• Recommendedfinancialsponsorshavedeepsectorexpertiseand
canbolsterscalethroughinorganicgrowth

8
$-
$100
$200
$300
$400
$500
$600
2020 2021 2022 2023 2024 2025 2026 2027
Competitive Advantages
Client Base
Financial Snapshot
Talawanda Turbines Overview
FY22
1
Source: Company Filings
(1) Figures in $MM USD
$164
$161
$22
$53
$141
$351
LT Debt
Net PP&E
Cash
EBITDA
Gross Profit
Revenue
Increased demand for
centrifugal fans used in
production and processing
of snacks and drinks
Food & Beverage
Demand for axial fans, and
centrifugal fans/blowers
led by increased interest in
indoor air quality (IAQ)
Filtration & Air
Control
Rise of ambulatory surgical
and treatment centers
generates high demand for
positive air systems
Healthcare
Trends toward reshoring
manufacturing capacity
increase the need for
industrial fans and blowers
General Industrial
Labs require clean airflow
to maintain positive air
pressure, driving the need
for air purifiers
Lab Research &
Exhaust
Increased use of vacuums
in material handling
applications drove demand
for centrifugal & axial fans
Material Handling
Customer-drivenbusiness
model resultinginhigh
recurringrevenues and
sticky relationships withits
diverseclientbase
• 20+ year averagetenure
of its top10customers
Superbsupply chain
managementwithsomeof
the bestleadtimes inthe
industry
• 10 – 15 days leadtime
vs industry standardof
2-4 weeks
In-housemanufacturing
capabilitiesprovidefastand
in-depthproduct
customization
Past Acquisitions
26%
16%
24%
17%
8%
7%
Food & Beverage
Filtration & Air Control
Healthcare
General Industrial
Lab Research & Exhaust
Material Handling
Other
FY27 Revenue Breakdown
ProjectedRevenue Growth
$508.4M

9
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2020 2021 2022 2023 2024 2025 2026 2027
Gross Profit Margin EBITDA Margin
Company Growth Prospects & Risks
Key Growth Initiatives Talawanda Turbines Margin Profile
Increase Exposure toAftermarket
New Product Innovation
Margin Enhancement Initiatives
Increase InternationalPresence
Add-on or Transformational Acquisitions
Acquisition Growth Segmented Industry Drivers
• Despitethebleak macroeconomic backdrop,inorganic growththrough
acquisitionscankeep Talawandadiversified, extendits productmix,and
mitigatepoorperformancefrom certainoperatingsegments
• Industry is ripeforconsolidationand Talawandacanacquiretargets to
enhancescaleandfurtherits geographic reach
Positioning Analysis
• TalawandaTurbines’highexposure torecessionresistant end markets
differentiates itfrom peers, whichhavehigherexposureto cyclicalend
markets suchas aerospace& defense, automotives,andoil & gas sectors
• Accountedfor~5%market share1 of thehighly fragmentedindustrial &
commercialfan/blowermanufacturingindustryin2021
• Lags peers interms of brandrecognition
Food & Beverage
Air Filtration
• Expected to grow at a 1.3% CAGR from 2021 - 2026.
As a consumer staple, the industry is resistant to
economic downturns.
$43B
$6.6B
• Expected to grow at a 1.9% CAGR from 2021 - 2026.
COVID-19 and increases in health consciousness
spurred investment in smart air filtration systems.
• Expected to grow at a 5.5% CAGR from 2022 to 2027.
The risein health centers increased demand for
positiveair pressuresystems.
• The cannabis cultivation market in theUS is expected
to grow at an 18.3% CAGR from 2021 – 2026. The
legalization of cannabis in several states is a main
driver of growth.
• Expected to grow at a 1.9% CAGR from 2020 – 2025.
The increase in pet ownership due to COVID drove
demand for centrifugal fans associated with grain & pet
food processing.
Source: Company Filings, IBISWorld
Note: Dotted lines denote industriesTalawanda can increase exposure to
(1) Calculated from 2021 IBISWorld Industrial & Commercial Fan & Blower Manufacturing report
Healthcare
$43B
Cultivation
$11B
Pet Food
$27B

11
Industrial & Commercial Fans/Blowers Overview Key Revenue Drivers
Industry Overview
Industry Growth Map
Market Share FY21
Source: Bloomberg,CapstonePartners, Company Filings, IBISWorld, Research andMarkets
Note: Market share taken from FY21revenue for the most relevant reported operating segment
MarketSize(US)
Projected Growth(‘20 – ’27)
Projected Business Growth(‘21 – ’26)
Annual EmploymentGrowth(‘21 – ’26)
• Industry demandis supportedby growthinthemanufacturing
and constructionsectors whichall experiencedsignificant
contractionduringCOVID-19,leadingto poorperformance
• In 2021lowinterestrates andhighcorporateprofits
droveindustry performancethrough growth in
nonresidential construction
• Pandemic andincreasingindustrialregulations spurredinterestin
indoorairquality andtheneedfordustcollectors/airpurification
products
• Airpurificationfans/blowerscompose49.8%of industry revenue
US CAGR: 2.9%
China CAGR: 5.4%
Japan CAGR: 0.8%
Canada CAGR: 2.2%
Key Trends SuccessFactors
Industry Snapshot
-15%
-5%
5%
15%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Revenue Private Non-Residential consruction IPI
14%
2%
2%
5%
77%
AMETEK
Ampco-Pittsburgh
CECO Environmental
Talawanda Turbines
Other
$6,000M
$6B
2.9%
0.7%
1.7%
New factories and facilities require industry wide products & services, making the
value of private non-residential constructiona good correlate forindustry revenue
Influx of strategic
acquirers building
HVAC platforms
Increased health
consciousness
Establishment of brand names – perception ofquality and
reliability
Vertical integration through M&A to leverage economies of
scale and scope that increase barriers toentry
Ability to accommodate environmental requests – ESG
movement and push towards sustainability
Strong pricing power can reduce the effects of rising costs
and protect margins
High growth in niche constructionmarkets (data, life
sciences, and distribution centers)
Utilizing M&A to
become one-stop
shops
Diversification in
end markets helps
stave off macro
slowdown

12
Macroeconomic Overview
Industrial Production Index & PMI1
Commentary
Source: FRED, Institute for Supply Management, KPMG, Pitchbook, William Blair Proprietary Middle Market LBO Financing Database
Note: PCE in $B USD
(1) Taken from 8/1/2021 – 8/1/22
Dodge Momentum Index
96
98
100
102
104
106
45
50
55
60
65
2021 2022
IPI PMI
Leverage Multiples
16,000
16,200
16,400
16,600
16,800
17,000
17,200
17,400
17,600
5.5x 5.5x 5.7x
5.4x 5.5x 5.4x 5.2x
5.9x
6.3x 6.2x 6.1x 6.0x 6.0x 6.0x
5.7x
6.0x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Middle Market LBO Leverage Multiples
SeniorLeverage Total Leverage
Personal Consumption Expenditures
Troubled
Waters
Rates
Witha stronglabormarket, strongconsumerdemand,
and industrials companiesreportinggrowingbacklogs,
a recession may bewhat theeconomyneeds to
curtail inflation. TheFederal Reserveis alsoseeking
to achieveits inflationtargetat any costpossiblewith
itrecently approvingits fourth75bps rate hike.
Federal Reserve’s
preferred gauge of
inflation
150
170
190
210
230
250
270
290
310
Measures nonresidential
building projects in planning
Outlook
Financial strainforsponsorsand portcos isexpectedto
increase, thoughtheirstrongcashpiles will still spur
buyoutactivity withthecaveatof muchlessleverage
and higherequity contributions. Onthestrategic buyer
side, theneed for more transparentsupply chains
and diversified productofferings remains.
Models predictaterminal fedfunds rateof 5% buta
debate arises as to howmuchhigherthe Fed canpush
borrowingcosts withoutexhaustingtheeconomyand
needing to pivot. Lendingmarket conditions are
expected totightengivenfears from lenders regarding
inflationstickiness,defaultrisks, andmarketvolatility.
Appetite for M&A in 2Q22 Compared to 2021
10%
3%
8%
23%
25%
32%
48%
45%
30%
17%
17%
27%
7%
3%
2%
3%
Industrial Manufacturing
ConsumerRetail
TMT
>2x as many deals 1.5x as many deals Same as before
Reducedby up to 25% Reducedby 26% to50% Reducedby more than 50%

13
Inflation Commentary
Favorable Company Dynamics Temper Economic Concerns Inflationary Pressures by Key End Markets
Source: Bank of AmericaGlobal Research,BloombergIntelligence,Federal Acquisition Regulatory Council (FAR), FRED
HVAC and Commercial Refrigeration Equipment PPI
150
160
170
180
190
200
210
220
Index
Value
Measures change in the prices paid to US producers of
HVAC and commercial refrigeration equipment
• TalawandaTurbines boastsstrongpricingpower andgrowing end-markets
whichallowsitto maintainstrongmargins amidstpersistentinflationary costsand
softeningdemand
• TalawandaTurbines’highproductcustomizationenablesitto havehighrecurring
revenueandsticky relationshipswithclients, furthercementingits pricingpower
• Its effectivesupplychainmanagementandproprietary configurationtool
allows itto standoutduringaperiodof disjointedsupplychains
Food & Beverage
Air Filtration
Healthcare
Lab Research
Material Handling
General Industrial
Rising packaging, transportation, and ingredient costs
curb effects of higher volume gains if companies
don’t hedge their biggest commodities, pass costs to
customers, charge retailers more, or reduce
promotions.
Labor costs are the highest cost line item andshould
ease upon the expiration of extended travel nurse
contracts that were signed to meet the omicron wave in
January. Geopolitical instability in Asia may keep supply
costs elevated given that 30%of medical supplies used
in the US are manufactured in that region.
Wage costs are having a greater impact on margins than
energy costs. Hedging of contracts is a common way to
mitigate energy costs. On the consumer side, grossprice
increases for drugs can weigh on consumer demand
and thus business valuations. J&J may delay the spin-off
of its consumer division for this reason.
The increase in the prices of industrial metals earlier
in 2022, oil (in the form of petroleum-based products),
urethane, and transportation have allbeen headwinds for
air filtration companies.
Labor costs are particularly high given that the industry
fails to attract enough workersdue to the skilled labor
shortage. Fuel and materialcosts also play a role in
inflationary pressures.
The falling prices of copper, steel, and aluminum have
provided temporary relief in materialcosts but
energy, freight, and labor costs remain the biggest
headwinds for industrials. Sectors with pricing
power like HVAC and distribution fare better while
others face more price-cost pressures.
Import Competition
• TheFed’s actions relativeto othercentral banks andinflationary pressuresinthe
Eurozonehavecausedthedollarto appreciaterelativeto othercurrencies
• As goods andservicesbecomecheaperinothercountries,importcompetitionis
expectedto increase
With 84% ofNorth Americanmanufacturers noting that they are likely to
re-shore and the higher domesticcontent requirementsin the Buy American
Act, we suggest thatTalawanda scaledomestically

15
Share % of Market Enterprise EBITDA EBITDA Margin
Company Name Ticker Price 52-Wk. High Cap Value LTM 2023E LTM 2023E LTM 2023E LTMEBITDA 2023 EBITDA LTMRevenue 2023 Revenue
Carrier Corporation CARR 39.4 99.0% 32,924 39,653 4,761 3,229 20,449 20,437 23.3% 15.8% 8.3x 12.3x 1.9x 1.9x
CECO Environmental CECE 11.4 97.9% 393 473 29 38 371 392 7.8% 9.6% 16.4x 12.6x 1.3x 1.2x
Crane Holdings Co. CR 100.8 87.8% 5,661 6,467 636 702 3,251 3,370 19.6% 20.8% 10.2x 9.2x 2.0x 1.9x
Donaldson Company DCI 57.3 99.4% 7,017 7,517 541 612 3,307 3,445 16.4% 17.8% 13.9x 12.3x 2.3x 2.2x
IMI IMI 1261.0 99.3% 3,676 4,596 557 501 2,570 2,326 21.7% 21.5% 8.3x 9.2x 1.8x 2.0x
Ingersol Rand Inc. IR 51.4 98.4% 20,801 22,355 1,241 1,395 5,711 5,749 21.7% 24.3% 18.0x 16.0x 3.9x 3.9x
Systemair SYSR 58.5 99.7% 12,168 14,769 1,267 1,382 10,193 11,045 12.4% 12.5% 11.7x 10.7x 1.4x 1.3x
Volution FAN 308.5 96.4% 610 703 74 73 308 313 24.0% 23.4% 9.5x 9.6x 2.3x 2.2x
Talawanda Turbines 53.1 350.7 15.1%
Minimum 8.3x 9.2x 1.3x 1.2x
First Quartile 8.6x 9.3x 1.5x 1.5x
Mean 12.0x 11.5x 2.1x 2.1x
Median 10.9x 11.5x 2.0x 2.0x
Third Quartile 15.7x 12.5x 2.3x 2.2x
Maximum 18.0x 16.0x 3.9x 3.9x
Revenue Enterprise Value
Comparable Companies Analysis
EV/EBITDA Commentary
• Comparablecompany universewas selectedbasedonpresencein
HVAC, airhandling, andairpurificationmarkets withlowresidential
marketexposureand geographically locatedintheUSand Europe
• TalawandaTurbines showsstronghistorical EBITDAmargin
growth andthere is moreopportunity forgrowththroughpotential
costsynergies afterTalawandagoes to market
• Investors placegreatervalueonbusinesses withhighexposureto air
filtration/purificationandstrongpricingpower, resultinginmost
peers trading near their 52-week high
8.3x
16.4x
10.2x
13.9x
8.3x
18.0x
11.7x
9.5x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
$CARR $CECE $CR $DCI $IMI $IR $SYSR $FAN
Source: Bloomberg, Company Filings

16
Transaction
Date Aquired Target Company Buyer Type Value EBITDA Revenue TV/EBITDA TV/Revenue
6/14/2022 SagiCofim Systemair Strategic $36 $4 $39 9.5x 0.9x
12/15/2020 TRUaire CSW Indsutrials Strategic $360 $36 $108 10.0x 3.3x
4/10/2018 Nicotra Gebhardt Regal Rexnord Strategic $162 $13 $202 12.5x 0.8x
2/1/2018 Bimba Manufacturing IMI Strategic $198 $16 $120 12.4x 1.7x
10/13/2016 Flakt Woods Triton Sponsor/Buyout $285 $23 $162 12.7x 1.8x
8/15/2015 Nuaire Genuit Group Sponsor/Buyout $232 $22 $124 10.5x 1.9x
Talawanda Turbines $53.1
Minimum 9.5x 0.8x
1st Quartile 9.9x 0.9x
Mean 11.3x 1.7x
Median 11.4x 1.7x
3rd Quartile 12.5x 2.2x
Maximum 12.7x 3.3x
LTMMetrics LTMMultiples
Precedent Transactions Analysis
TV/EBITDA Commentary
• Precedent transactionuniversewas selectedbasedonrecent
acquisitionsof airhandlingsystem manufacturersorOEM parts
suppliers with similarmarkets andoperational capabilities
• Theair handlingM&Amarkethas seenstrategic acquisitions usedto
realizeoperational synergies, extendproductandservice
portfolios,andto buildHVACorcoolingplatforms
• Recessionresilience, highrecurringrevenue, andtrends towardair
quality awareness andenergy efficiency attractfinancial sponsors to
the space
• Theair handlingmarketis highly fragmentedwhich
allows sponsorsto employ abuy andbuildstrategy
9.5x 10.0x
12.5x 12.4x 12.7x
10.5x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
SagiCofim TRUaire Nicotra Bimba Flakt Nuaire
Source: Bloomberg,CapstonePartners, Company Filings, PitchBook

17
Source: Company Filings, Team Projections
Discounted Cash Flow Analysis
Unlevered Free Cash Flows Sensitivity Analysis
Implied Valuation Commentary
• Usingthe targeted capital structureuponexit, the
WACCwas calculatedat8.9%, placingtheDCF as the
highestvaluationmethodology (referto Appendix)
• Strong EBITDAgrowth ledto highervaluationfor
the EBITDAExitMultipleMethod
• Calculateda10.9x EBITDAExitMultiplefrom the
medianof the comparablecompaniesanalysis
• Assumeda2.5% perpetuity growthrate basedon
the rate of inflationandsteady maturenature of the
manufacturingindustry
Discounted Cash Flow Analysis 2023P 2024P 2025P 2026P 2027P
Revenue $380.1 $412.9 $444.3 $476.2 $508.4
Gross Profit 157.3 175.0 184.5 196.7 209.0
EBIT 38.3 48.8 52.8 57.7 63.9
Taxes (8.0) (10.2) (11.1) (12.1) (13.4)
NOPAT 30.2 38.5 41.7 45.6 50.5
Plus: Depreciation & Amortization 7.6 8.3 8.9 9.5 10.2
Less: CapEx (14.3) (15.5) (16.7) (17.9) (19.1)
Less: Change in NWC (0.8) (0.7) 2.1 1.2 1.2
Unlevered Free Cash Flow 22.7 30.6 36.1 38.4 42.8
Years 1.0 2.0 3.0 4.0 5.0
PV of Unlevered Free Cash Flow 20.9 25.8 27.9 27.3 27.9
PV of Projection Period $129.8
$496.21 1.9% 2.2% 2.5% 2.8% 3.1%
7.9% 631 659 689 724 763
8.4% 580 603 629 657 688
8.9% 535 555 $576 599 625
9.4% 499 516 534 554 575
9.9% 499 516 534 554 575
Perpetuity Growth
WACC
$730.64 10.5x 10.7x 10.9x 11.1x 11.3x
7.9% 740 751 763 774 786
8.4% 724 735 746 758 769
8.9% 708 719 $731 741 753
9.4% 693 704 715 726 737
9.9% 679 689 700 711 721
WACC
EBITDA Exit Multiple
Growth Rate 2.5%
2027 Unlevered FCF 43
Terminal Value 684
PV of Terminal Value 446
Enterprise Value 576
$
Exit Multiple 10.9x
2027P EBITDA 84
Terminal Value 921
PV of Terminal Value 601
Enterprise Value 731
$
PerpetuityGrowthRate EBITDA Exit Multiple

18
Leveraged Buyout Analysis
Commentary
Implied Valuation Sources Uses
Sensitivity Analysis Capital Structure
Source: Bloomberg,CME,Company Filings, Team Projections
(1) Floating rate assumptions based offSOFR futures curve
Term Loan – A Assumptions
Key Assumptions
• Strong recurring revenues, resilientmargins,andastrongmarketpositionmake Talawanda
an attractivetarget forfinancial sponsors considering a platforminvestment in the
rapidly consolidating air handling markets
• WithbothLIBORandSOFRrates continuingto increase, thehighcostof debtfinancing
disincentivizesleveragingup
• An extra turn of debt wouldincreasetransactionvalueandslightlylowerbothreturn
metrics (MoM & IRR) andequity value
• Leverage of 4.0x2022EEBITDA
• Interest Rate: SOFR+ 450bps1
• Fees:$2MM
• Exit Multiple:11.4x
• Target SponsorIRR:20.0%
• InvestmentPeriod:5 years
• $13MM inM&A, legal, & otherfees
$649 11.0x 11.2x 11.4x 11.6x 11.8x
15.0% 743 751 760 768 776
17.5% 686 694 701 708 716
20.0% 636 643 $649 656 663
22.5% 592 598 604 610 616
25.0% 553 558 564 569 575
EBITDA Exit Multiple
Sponsor
IRR
$649 3.0x 3.5x 4.0x 4.5x 5.0x
15.0% 712 736 760 783 807
17.5% 653 677 701 725 749
20.0% 601 625 $649 673 697
22.5% 556 580 604 628 652
25.0% 515 539 564 588 612
Leverage
Sponsor
IRR
Purchase Price 507
Plus: Debt 164
Less: Cash 22
Transaction Value 649
$
Term Loan - A 212
Sponsors Equity 426
Management Roll-Over 47
Sources 686
$
Transaction Value 649
Beginning Cash Balance 22
Transaction Expenses 15
Total Uses 686
$
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2022 2023 2024 2025 2026
Debt Equity

20
Potential Strategic Acquirers – Tier A
Company Overview Size & Position Rationale Brands
Charlotte-basedsupplier
of highly engineered
equipmentand
technologies
Enterprise Value: $2.6B
# of add-ons: 11
Cash on Hand: $189.8M
Debt/EBITDA: 2.2x
Has 3previous bolt-onacquisitions
forits global HVACsegment. The
industry’s attractivegrowthprofile
and Talawanda’s potential cost
synergies withSPX’s other
subsidiariesmakes itastrongfit
Medtechcompany whose
FabricationTechnology
segmentmakes ita
leadingglobal supplierof
products foruseinsteel
and metal welding
# of add-ons: 36
Cash on Hand: $358M
Debt/EBITDA: 3.7x
With3 previous buy-side
investments inindustrialfan
companies, Enoviscanvertically
integrate Talawandaand further
buildoutits air& gas handling
platform
Source: Bloomberg,Company Websites, PitchBook
Note: Dotted lines denote William Blairtransaction
BasedinBeloit, WI, Regal
operates 170 facilities
throughoutthe globeand
serves commercial and
industrial OEMsacross
differentindustries
Enterprise Value:
$11.4B
# of add-ons: 37
Cash on Hand: $702M
Debt/EBITDA: 2.18x
With37priorbuy-sideinvestments
Regal Rexnord has enough capital
to supportanaggressiveplatform
rolloutplanforTalawandaandcan
increaseits exposureto the
automotiveaftermarket
Industrial conglomerate
and manufacturerof
electronic deviceswith
over220sites globally
Enterprise Value:
$29.7B
# of add-ons: 94
Debt/EBITDA: 1.9x
Ametek’s strategy emphasizes
inorganic growththrough
acquisitionandhas extensive
experiencewithvertically
integrating companies andtheir
manufacturingcapabilities
Minneapolis, MNbased
filtrationcompany
servingadiverserange of
end markets including
construction, mining,
agriculture, andindustrial
# of add-ons: 26
Debt/EBITDA: 1.1x
With26buy-sideinvestments anda
vertically integratedbusiness
model, Donaldsoncanbenefitfrom
Talawandastreamliningback-end
supply chainoperationsand
buildingpresenceintheMidwest

21
Potential Strategic Acquirers – Tier B
Company Overview Size & Position Rationale Brands
Source: Bloomberg,Company Websites, PitchBook, ZoomInfo
Watsco is thelargest
distributorof HVAC
equipment, parts, and
supplies, operating569
locations intheUS,
Canada, MX, andPR
Enterprise Value:
$10.2B
# of add-ons: 3
Cash on Hand: $130M
Debt/EBITDA: 0.5x
Watsco’s strongbalancesheetgives
itthe ability to investinany size
opportunity andbuildscaleto give
Talawandaaccess to new
distributionchannels
Americanmultinational
HVACand security
systems services
corporationbasedin
Palm BeachGardens, FL
Enterprise Value:
$35.9B
# of add-ons: 46
Cash on Hand: $3B
Debt/EBITDA: 2.3x
With46previous buy-side
investments, Carrierhas extensive
experienceintegrating companies
and cangiveTalawandamore
exposureto recessionresistantend
markets likesecurity systems
Manufacturerof semi-
custom HVACequipment
forcommercial and
residential usewithmore
than 1.7M sqftin
manufacturingspace
# of add-ons: 3
Debt/EBITDA: 0.78x
Its acquisitionof BASXSolution
expanded AAON’s reachinto the
Midwest, whichallows foragreater
geographic footprintinthe region
Ingersoll-Randis the
manufacturerof flow
control andcompression
equipmentwith~40
manufacturingfacilities
across theglobe
Enterprise Value:
$20.5B
# of add-ons: 20
Cash on Hand: $1.3B
Debt/EBITDA: 3.1x
Witha focus oninorganic growth
through bolt-onacquisitions,
Talawandacanserveas onethat
extends Ingersoll’s addressable
marketto very closeadjacencies
withits airflow companies
Sponsor-backedcompany
and manufacturerof air
filters forhealthcare,
industrial, chemical,and
food& beverage end
markets
Revenue: ~$2B
# of add-ons: 20
Investors:
Sequoia Capital, Babson
Capital Management,
Madison Industries
With28previous buy-side
investments, FiltrationGroupcan
vertically integrateTalawandainto
its airfiltrationplatform

22
Potential Financial Sponsors – Tier A
Firm Overview Size & Criteria Rationale Portfolio
Foundedin2018, Arcline
has sinceraisedover
$4.4B across 3funds that
makeinvestments in
commercial products and
industrial technology
Fund Size: $2.8B
Relevant Sectors:
Commercial Products,
Industrial Technology
Arclinehas afocus onengineered
components business modelsand
has madeseveral investments in
OEMs acrossdifferentsectors,
makingTalawandaagoodfitfor its
portfolio
Source: Firm Websites, PitchBook
Note: Transparency indicatesa legacy investment
Foundedin2001and
basedinNewYork,
Lindsay Goldberghas
raisedover$17B in
capital across 6funds
Fund Size: $3.4B
Relevant Sectors:
Industrials
Lindsay Goldberg’s previous
experiencewithBAF can help
Talawandarealizesome
operational improvements, recruit
new management, and supportthe
next phaseof Talawanda’s growth
BasedinNew York and
havingraisedover$6.3B
sinceits inception,
Odysseyhas afocus on
healthcare, industrials,
and packagingcompanies
Fund Size: $3.2B
EBITDA:
$20M - $100M
Relevant Sectors:
Industrial Services &
Distribution
Odysseyfocusesonleading
platforms infragmentedmarkets
and deploys abuy-and-build
approachto increasegeographic
reach, realizecostsynergies, and
add complementary productlines
Foundedin1966,
Warburg Pincus has more
than $80B inAUM andis
an experiencedpartner to
management lookingto
builddurablecompanies
Fund Size: $15B
Dry Powder: $8.2B
Relevant Sectors:
Industrials
Warburg Pincus seeks to take
advantage of local andglobal trends
withits thesis-driveninvestment
approachand has enoughcapital to
supportan aggressiveplatform
rollout
Foundedin1982and
withmorethan $19.6B
AUM, TJCseeks to build
valueforcompanies in
the industrials, utilities,
and logisticssectors
Fund Size: $5B
Dry Powder: $3.3B
Relevant Sectors:
Industrials
Withover371add-on acquisitions
completedsince2002, TJCcanuse
its expertiseto integrate Talawanda
and growit to capture additional
marketshare

23
Potential Financial Sponsors – Tier B
Foundedin1996and
basedinZug, Switzerland,
Partners Grouphas since
raisedover$131B to
investingrowth-stage
companies
Fund Size: $15B
Relevant Sectors:
Industrials, Advanced
Manufacturing
Partners Groupseeks to identify
transformativetrends across
industry verticalsandto make
platform investments incompanies
withthe strongestpotential to
benefitfrom thosetrends
Foundedin1989,
AmericanIndustrial
Partners focuses on
buyingandimproving
industrials businesses
withoperations inNA
Fund Size: $3.0B
Revenue: >300M1
EBITDA: Up to $250M
Relevant Sectors:
Manufacturing,
Industrials
Witha preferencefor industrials
companies thathaveB2B seller
relationships andnicheproduct
offerings, Talawandacanserveas a
platform investmentforair
handlingmarkets
Source: Firm Websites, PitchBook
Note: Dotted lines denote William Blairtransaction
(1) American Industrial Partners’minimum revenue fora platform investment
Sinceits foundingin1999
Audax Grouphas raised
over$32B incapital and
has investedover$9B in
150platforms andover
1,050add-oncompanies
Fund Size: $1.7B
EBITDA: $8M - $50M
Relevant Sectors:
Technology
Audax looks forcompanieswith
marketleadingpositions and
sustainablecompetitiveadvantages.
Talawandacanbe a great add-on
forits buy-and-buildstrategy
NS Micro
Motor
Technology
BasedinNewYork, New
York and foundedin
1991, KPS has raisedover
$13.6B to investin
manufacturingand
industrials companies
Dry Powder: $4.4B
Check Size: up to $1B
Relevant Sectors:
Manufacturing, General
Industrials
KPS Capital Partners has deep
sectorexpertiseinmanufacturing
and creates valueby working
closely withmanagementteams
Foundedin1974and
basedinNewYork,
Tinicum has raisedover
$2.2B to investin
engineered products and
industrial services sectors
Fund Size: $2.3B
Relevant Sectors:
Distribution,
Engineered Products
Withdeep sectorexpertiseinOEM
and engineered products, Tinicum
closely partners withmanagement
teams and seeks to improve
operational inefficiencies
Firm Overview Size & Criteria Rationale Portfolio

24
Potential Acquisitions
High Priority
M&A Targets
Segment
Industrial Fans
Company Description Overview
OEM & Niche
Manufacturing
Manufacturerof
custom engineered
industrial fans
Location:
Zelienople, PA
Revenue:
~$61M
Providerof airand
ventilationproducts
forcommercial&
industrial end
markets inCanada
Location:
Montreal, QC
Revenue:
~$26M
Wholesale Trade
Manufacturerof
portableand
stationary rotary air
compressors
Location:
MichiganCity,IN
Revenue:
~$256M
Manufacturerof
highly customized
HVACRequipment
Location:
San Diego, CA
Revenue:~$6M
Manufacturerand
distributorof
industrial fans for
horticultureand
foodprocessingend
markets
Location:
Blythewood,SC
Revenue:
~$42M
Manufacturerof
ventilation
equipmentfor
agricultural and
horticulture
markets
Location:
Sauk Rapids, MN
Revenue:
~$17M
Expanded product offerings
and access to fast growing
end markets
Technical & manufacturing
capabilities that can be
leveraged across Talawanda
Increase exposure to
aftermarket and gain new
service mixes
Cost synergies and
increased Midwest reach
after transformational
acquisition
Increased international
presence
Streamline supply chain
through vertical integration
Source: Company Websites, ZoomInfo
Streamline supply chain with
extensive distribution
network
Margin enhancement
opportunities through
economies of scope/scale

25
M&A Market Outlook
Air Handling M&A Activity Tailwinds & Headwinds
Source: Greenwich Capital Group Proprietary Research, McKinsey, PitchBook, S&P Capital IQ
12.6x 12.1x
10.5x 10.3x
11.3x
10.1x 9.7x 9.8x 10.0x
9.2x 8.9x 8.7x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
Median TEV/Revenue Median TEV/EBITDA
US Middle Market Index Trading Multiples Commentary
• Deal volumeandvaluations havedecreasedfollowingrisinginterestrates,
geopoliticalinstability,inflation,andhighcapitalmarkets volatility
• Dropinvolumeisbalancedby morevalue creationgivenmore
selectivity anddemandforhighqualityassetsfrom buyers
• Recentdeal activity ledby strategicacquirers islessfocusedon
transformational dealsandmoreonsmallerdealsto buildoutplatforms,
fill instrategic marketgaps, anddivestfromnon-coreassetsordivisions
• Giventhestrongdemandforresilientandhigh-qualityindustrials
companies likeTalawandaWilliam Blairsuggests thatTalawandagoto
market in the near term
• Goingto marketas soonas possiblereducestimingrisks
associatedwithtransactionexecution, changesintaxrates, and
futuremultiplecontraction
$1.2Tin drypowder asof Q3 2022
Corporate balance sheet strength
Portfolio diversification tostave off macroheadwinds
Tighteningmonetaryconditions
High market volatility& fallingvaluations
Geopolitical uncertainty
0
10
20
30
40
50
60
70
2018 2019 2020 2021 2022
#
of
Transactions
Corporate/Strategic Financial Sponsor

26
Illustrative Process Timeline & Next Steps
November 2022
December 2022
January 2023
February 2023
March 2023
Next Steps
Dec: Marketing and Initial Bids
• Distribute Teaser, CIM, and
relevant materials
• Prepare management
presentation
• Host introductory calls
• Receive initial bids
Jan – Feb: Second Round Bids
• Management presentations
• Provide data room access
• Receive final bids
Mar: Negotiation
• Evaluate final bids
• Negotiate preferred buyer
• Complete HSR form
Nov: Transaction Planning
• Perform sell-side due diligence
• Finalize buyer universe and have
interviews with select companies
• Finalize marketing materials
• Prepare data room
William Blair Investment Banking Select Transactions
NotDisclosed
Has been acquired by
October 2021
UndisclosedBuyer
NotDisclosed
October 2020
UndisclosedBuyer
NotDisclosed
October 2019
UndisclosedBuyer
NotDisclosed
October 2018
UndisclosedBuyer
NotDisclosed
October 2017
UndisclosedBuyer
NotDisclosed
October 2016
UndisclosedBuyer
Final Recommendation
Apr – May: Closing
• Receive merger approval from
FTC
• Financing and closing
• Avoidfurther
multiple contraction,
tax rate changes, and
rate increases
• Targeted auctionfilters
companies to alignwith
Talawanda’s terms
• Buyers findit
imperativeto buy
quality assetsthat
will helpthem
navigateuncertainty
• Talawandashould
considerstrategics that
wouldallownew
management to stay
• Focus onbuyers with
best strategicfits and
access to capital
• Potential forhigher
valuations andafaster
saleprocess
Go to Market Near-Term Targeted Auction Process Management Transition

28
Financial Statements and WACC Calculation
Pre-Tax Cost of Debt 5.00%
Corporate Tax Rate 21.0%
After-Tax Cost of Debt 4.0%
Cost of Debt Calc.
Cash Flow Statement 2023P 2024P 2025P 2026P 2027P
Net Income 23.7 32.7 36.6 40.9 46.3
Depreciation 7.6 8.3 8.9 9.5 10.2
Less: Change in NWC (0.8) (0.7) 2.1 1.2 1.2
Cash Flow from Operations 30.5
$ 40.2
$ 47.6
$ 51.6
$ 57.7
$
Capital Expenditures (8.6) (9.3) (10.0) (10.7) (11.4)
Maintenance Capital Expenditures (5.7) (6.2) (6.7) (7.1) (7.6)
Cash Flow from Investing (14.3)
$ (15.5)
$ (16.7)
$ (17.9)
$ (19.1)
$
Change in Debt (17.1) (16.5) (12.6) (11.4) (10.3)
Cash Flow from Financing (17.1) (16.5) (12.6) (11.4) (10.3)
Net Change in Cash (0.8)
$ 8.3
$ 18.3
$ 22.4
$ 28.3
$
Beginning Cash 22.4 21.6 29.8 48.2 70.5
Ending Cash 21.6
$ 29.8
$ 48.2
$ 70.5
$ 98.9
$
Company Name Adjusted Beta Equity Debt Tax Rate Unlevered Beta
Carrier Corporation 1.07 32,923.6 9,403.0 15.8% 0.86
CECO Environmental 1.00 393.3 109.0 38.3% 0.85
Crane Holdings Co. 1.08 5,660.5 1,247.7 31.4% 0.94
Donaldson Company 0.95 7,017.0 692.8 24.1% 0.88
IMI 1.17 3,675.6 1,088.0 15.0% 0.93
Ingersoll-Rand Inc. 1.10 20,800.8 2,796.0 9.2% 0.98
Systemair 1.48 12,168.0 2,849.7 24.5% 1.26
Volution 0.97 609.6 108.0 24.4% 0.86
Talawanda Turbines Unlevered Beta 0.95
Unlevered Beta Calc.
Risk Free Rate 4.15%
Equity Risk Premium 4.50%
Levered Beta 10.15
Size Premium 2.00%
Cost of Equity 70.1%
Cost of Equity Calc.
Risk Free Rate 4.15%
Unlevered Beta 0.95
Equity Risk Premium 4.50%
Size Premium 2.00%
Corporate Tax Rate 21.0%
Inputs
Unlevered Beta 0.95
Equity 14.30
Debt 176.20
Tax Rate 21.0%
Levered Beta 10.15
Capital Structure
Income Statement 2020A 2021A 2022E 2023P 2024P 2025P 2026P 2027P
Total Revenue 301.0
$ 324.2
$ 350.7
$ 380.1
$ 412.9
$ 444.3
$ 476.2
$ 508.4
$
Total Revenue Growth 7.7% 8.2% 8.4% 8.6% 7.6% 7.2% 6.8%
Total Cost of Sales 189.8
$ 205.2
$ 209.7
$ 222.8
$ 237.9
$ 259.8
$ 279.6
$ 299.5
$
Gross Profit 111.3
$ 119.0
$ 141.0
$ 157.3
$ 175.0
$ 184.5
$ 196.7
$ 209.0
$
Total SG&A 77.0
$ 82.1
$ 87.9
$ 94.3
$ 101.4
$ 110.2
$ 118.1
$ 124.6
$
EBITDA 34.3
$ 36.9
$ 53.1
$ 63.0
$ 73.5
$ 74.3
$ 78.6
$ 84.4
$
EBITDA Margin 11.4% 11.4% 15.1% 16.6% 17.8% 16.7% 16.5% 16.6%
Total Depreciation 6.0
$ 6.5
$ 7.0
$ 7.6
$ 8.3
$ 8.9
$ 9.5
$ 10.2
$
Amortization 18.1 17.8 17.5 17.1 16.5 12.6 11.4 10.3
Total D&A 24.1
$ 24.3
$ 24.6
$ 24.7
$ 24.8
$ 21.5
$ 20.9
$ 20.4
$
Total Capex 11.3
$ 12.2
$ 13.2
$ 14.3
$ 15.5
$ 16.7
$ 17.9
$ 19.1
$
EBIT - Operating Income $10.2 $12.6 $28.5 $38.3 $48.8 $52.8 $57.7 $63.9
EBIT Margin 3.4% 3.9% 8.1% 10.1% 11.8% 11.9% 12.1% 12.6%
Interest Expense (Income) - - - 8.2 7.3 6.5 5.9 5.3
Pre-Tax Income $10.2 $12.6 $28.5 $30.1 $41.4 $46.3 $51.8 $58.6
Tax Expense 2.1 2.6 6.0 6.3 8.7 9.7 10.9 12.3
Net Income 8.1
$ 10.0
$ 22.5
$ 23.7
$ 32.7
$ 36.6
$ 40.9
$ 46.3
$
Financial Statements
WACC Calculation
Market Value of Debt
% Total 92.49%
Cost of Debt 3.95%
Market Value of Equity
% Total 7.5%
Cost of Equity 70.1%
WACC 8.92%
WACC Calculation

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15th Annual William Blair Case Competition