Kona Adventures is a leading provider of travel and entertainment services that maintains its market position through organic and inorganic growth. Valuation analyses place Kona's enterprise value between $560-600 million based on 2016E revenue of $206.2 million and EBITDA of $52.6 million. Comparable analyses and precedent M&A transactions support a valuation range of $552.1-604.7 million. It is recommended that Kona pursue a near-term sale to a strategic buyer given compelling financials and historically strong market conditions.
Miami University 2015 William Blair I-Banking Competition WinnerMichael T. Loffredo
Armstrong Foods is a leading food and beverage distributor seeking a potential sale. Valuation analyses value the company between $450-480 million based on comparable company and precedent transaction multiples of 8-10x EBITDA. A sale to a financial sponsor is recommended due to potential synergies, though a strategic buyer could work if they retain management. Key considerations include the fragmented distribution industry and Armstrong's diversified customer and product base.
Talawanda Turbines is a leading manufacturer of industrial fans, blowers and exhaust systems with a diverse customer base. It has experienced high organic growth through innovative processes and expanded into new markets through acquisitions. A sale to a strategic buyer is recommended to realize synergies and given the current M&A environment, with SPX Corporation identified as the best fit due to opportunities in similar verticals.
15th Annual William Blair Investment Banking Case CompetitionRobertNahigian
Our team served as sell side advisors by. deriving the intrinsic value of fictitious company using four valuation methods to create a cohesive slide deck that defined the firm’s market position.
We further examined the industrial filtration industry and proposed multiple potential strategic acquirers and financial sponsors.
2017 William Blair & Company Investment Banking Case Competition - FinalistIan Socrates
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
2020 - 13th Annual William Blair Investment Banking Case Competition Presenta...Demetre Carnot
Paesano's Products is a leading contract manufacturer and formulator for personal care and household products. The document discusses Paesano's industry, financials, growth opportunities, and strategic options moving forward. It recommends a full sale of Paesano's to a financial sponsor or strategic acquirer, valued between $700-760 million, to take advantage of high acquisition interest while retaining strong management.
BrickDiscovery provides end-to-end eDiscovery services to large corporations. Valuation analyses value the company between $433-$476 million. The analyses include precedent transactions, comparable companies, discounted cash flow, and leveraged buyout models. It is recommended that BrickDiscovery pursue a near-term sale to a financial sponsor to scale internationally, such as in Asia.
15th Annual William Blair Case CompetitionMickeyFanella
Talawanda Turbines is a leading designer and manufacturer of industrial fans and exhaust systems with $350 million in 2022 revenue. The company has a strong financial profile with high margins and growth. William Blair recommends Talawanda pursue a sale to a strategic buyer or financial sponsor at a valuation of $590-670 million to take advantage of consolidation in the fragmented industry. Potential buyers could leverage synergies to expand market presence.
15th Annual William Blair Investment Banking Case CompetitionOscar Arenas
Talawanda Turbines is seeking strategic options including an IPO, sale to a strategic acquirer, or sale to a financial sponsor. The valuation analysis values Talawanda between $590-670 million based on precedent transactions, comparable companies, and a DCF model. Key growth drivers include increasing exposure to resilient end markets like food & beverage and healthcare. The company has strong margins and market share in the fragmented industrial fans/blowers industry. William Blair recommends a near-term sale to a strategic buyer or financial sponsor that can leverage synergies and expand Talawanda's market presence.
Miami University 2015 William Blair I-Banking Competition WinnerMichael T. Loffredo
Armstrong Foods is a leading food and beverage distributor seeking a potential sale. Valuation analyses value the company between $450-480 million based on comparable company and precedent transaction multiples of 8-10x EBITDA. A sale to a financial sponsor is recommended due to potential synergies, though a strategic buyer could work if they retain management. Key considerations include the fragmented distribution industry and Armstrong's diversified customer and product base.
Talawanda Turbines is a leading manufacturer of industrial fans, blowers and exhaust systems with a diverse customer base. It has experienced high organic growth through innovative processes and expanded into new markets through acquisitions. A sale to a strategic buyer is recommended to realize synergies and given the current M&A environment, with SPX Corporation identified as the best fit due to opportunities in similar verticals.
15th Annual William Blair Investment Banking Case CompetitionRobertNahigian
Our team served as sell side advisors by. deriving the intrinsic value of fictitious company using four valuation methods to create a cohesive slide deck that defined the firm’s market position.
We further examined the industrial filtration industry and proposed multiple potential strategic acquirers and financial sponsors.
2017 William Blair & Company Investment Banking Case Competition - FinalistIan Socrates
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
2020 - 13th Annual William Blair Investment Banking Case Competition Presenta...Demetre Carnot
Paesano's Products is a leading contract manufacturer and formulator for personal care and household products. The document discusses Paesano's industry, financials, growth opportunities, and strategic options moving forward. It recommends a full sale of Paesano's to a financial sponsor or strategic acquirer, valued between $700-760 million, to take advantage of high acquisition interest while retaining strong management.
BrickDiscovery provides end-to-end eDiscovery services to large corporations. Valuation analyses value the company between $433-$476 million. The analyses include precedent transactions, comparable companies, discounted cash flow, and leveraged buyout models. It is recommended that BrickDiscovery pursue a near-term sale to a financial sponsor to scale internationally, such as in Asia.
15th Annual William Blair Case CompetitionMickeyFanella
Talawanda Turbines is a leading designer and manufacturer of industrial fans and exhaust systems with $350 million in 2022 revenue. The company has a strong financial profile with high margins and growth. William Blair recommends Talawanda pursue a sale to a strategic buyer or financial sponsor at a valuation of $590-670 million to take advantage of consolidation in the fragmented industry. Potential buyers could leverage synergies to expand market presence.
15th Annual William Blair Investment Banking Case CompetitionOscar Arenas
Talawanda Turbines is seeking strategic options including an IPO, sale to a strategic acquirer, or sale to a financial sponsor. The valuation analysis values Talawanda between $590-670 million based on precedent transactions, comparable companies, and a DCF model. Key growth drivers include increasing exposure to resilient end markets like food & beverage and healthcare. The company has strong margins and market share in the fragmented industrial fans/blowers industry. William Blair recommends a near-term sale to a strategic buyer or financial sponsor that can leverage synergies and expand Talawanda's market presence.
William Blair Investment Banking Case Competition Jake White
Performed comprehensive strategic analysis for a fictitious educational services provider to identify and evaluate potential exit opportunities that would position the company for strong future expansion. Constructed public comparables, precedent transactions, discounted cash flow and leveraged buyout analyses to form a valuation range.
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
This document provides an analysis of Patterson Education Group (PEG) for a case competition. It includes:
- An executive summary that outlines PEG's unique personalized high school model and strong projected growth rates.
- An industry overview of the growing K-12 education sector and education technology industry.
- An analysis of PEG's business model, growth opportunities, and financial projections. Strengths include barriers to entry and technological advantages.
- A valuation of PEG using precedent transactions, comparable company analyses, and a discounted cash flow model, resulting in an estimated valuation range of $170-300 million.
- A discussion of strategic options such as organic growth through new schools and technology expansion, or
William Blair Investment Banking Competition Slide DeckEric Bonelli
This document provides an executive summary for Paesano's Products, which manufactures household, personal care, and hospitality products. It evaluates Paesano's using valuation methods like comparable companies, precedent transactions, and DCF. Key points:
- Paesano's is well-positioned for growth in personal and household products due to pandemic demand.
- Valuation analysis values the company between $600-800 million.
- The summary recommends a sale to a middle market financial sponsor to optimize growth potential.
This document provides an overview and analysis of Skipper's Sporting Goods for potential transaction options. It summarizes the company's position in the sporting goods industry, growth opportunities, and financial projections. Valuation methods, including leveraged buyout, IPO, and precedent transactions, imply an enterprise value range of $1,400-$1,600 million. The recommendation will evaluate strategic acquisition, sponsor buyout, IPO, and maintaining the status quo based on maximizing shareholder value and management goals.
Credit Suisse Fall 2015 Pitch Competitionjontripp17
The document discusses Credit Suisse seeking an anchor investment for its private equity fund. It recommends purchasing ABM Industries as a platform company to build upon through acquisitions. The recommendation analyzes ABM's industry exposure, growth strategy, margin expansion opportunities, management team, and potential exit opportunities for investors.
2015 - Cleveland Research Company Stock Pitch Competition Runner UpMichael T. Loffredo
Cytec Industries is positioned to benefit from growth in the aerospace, automotive, and mining industries. It has substantial contracts with Boeing and Airbus to supply lightweight composite materials for commercial aircraft. Legislation requiring automakers to improve fuel efficiency will increase demand for composites. In mining, decreasing ore grades are driving increased production and use of Cytec's separation chemicals. The analyst recommends Cytec as a buy with a 12-month price target of $70.50, representing 30.51% upside.
Miami University 2016 Cleveland Research Company Stock Pitch Competition WinnerMichael T. Loffredo
Orbital ATK is an aerospace and defense company that provides products and services to government and commercial customers. The presentation recommends Orbital ATK as a buy with a 12-month price target of $110, representing 27.1% upside. Key points include Orbital ATK benefiting from international military spending increases, growth in commercial aircraft deliveries, and opportunities in satellite servicing. Risks include competition from larger players and potential issues executing innovative contracts.
Conducted numerous valuation methodologies and thorough research for Steinkeller Solutions, a highly specialized staffing firm focused on Life Sciences, Technologies, Healthcare IT, and Energy. Assessed Bloomberg data, company financials, and company strategy to make an informed strategic sale recommendation to a sponsor to William Blair bankers.
2023 Cleveland Research Company Intercollegiate Stock Pitch Competition - Fin...Oscar Arenas
This document provides an overview and analysis of Fastenal, an industrial goods distributor. It includes an investment thesis that Fastenal is undervalued given initiatives that could drive operating margin expansion despite analyst pessimism over macro factors. The document outlines Fastenal's business model, strategy of focusing on onsite locations and national accounts, and financial projections showing revenue growth driven by these initiatives. Key risks discussed are a potential manufacturing downturn and loss of suppliers.
Cleveland Research Company Stock Pitch - Acuity BrandsAlexVasapolli
Acuity Brands is pitching Cleveland Research Company stock. They provide an overview of Acuity Brands, the lighting industry, the company's financials, valuation, and investment thesis. Key points include that Acuity Brands has a large commercial construction customer base, pursues technology and efficiency initiatives, and has an ESG strategy, positioning it for growth in the expanding lighting industry. The analysts value Acuity Brands at $235 per share, representing a 28.79% upside from the current price.
Placed 1st out of 20 teams advising board members of a medical technology company on various strategic alternatives and maximizing shareholder value by utilizing discounted cash flow (DCF), precedent transactions, and comparable companies in a pitchbook presentation
2018 Wall Street Week Stock Pitch, First PlaceJoe Braun
The document analyzes MasTec as an investment opportunity, noting that its Communications and Oil & Gas segments are poised for unexpected growth due to accelerating 5G rollouts and continued strength in oil and gas. It sets a 12-month price target of $66 per share, representing 45% upside, based on rapid expansion of AT&T's 5G network and enhanced top and bottom line growth from Communications and Oil & Gas. Valuation analyses find MasTec significantly undervalued relative to peers on forward P/E, EV/EBITDA, and EV/Revenue multiples.
This slide deck was prepared in the spring of 2017 for the CRC Stock Pitch Competition. The team used a DCF model and comparables, among other methods, to value and analyze the company. One of the main arguments for growth in addition to the drivers was the undervalued Euro, and since presentation, has corrected itself and appreciated in value.
The document discusses strategic opportunities for The Clorox Company. It analyzes the company's current positioning, the macroeconomic and industry outlook, and provides an overview of four strategic options - maintaining the status quo, selling to a strategic acquirer, a leveraged buyout, or divesting a segment. The team recommends that Clorox divest the Kingsford brand through an auction process at a valuation of 16.0x EV/EBITDA to raise capital for growth opportunities and better align with consumer trends.
This is a stock pitch for BlackBerry that was presented to faculty and investment professionals for the Cleveland Research Company Stock Pitch Competition in April 2017. My team's pitch was selected as one of the four finalist groups.
Cleveland Research Company Stock Pitch Competition Finalist PresentationNick Meyerson
Finished in the top 5 teams, presented this slideshow to a panel of equity research analysts and associates, and fielded questions about Mobileye's capital structure, its share price's sensitivity to excitement in the media, and projections including a DCF analysis, comparables analysis, and multiple sensitivity analyses.
Was one of five teams to present in front of a panel of equity research analysts and associates. Pitched Mobileye (MBLY) stock as a buy with a 12 month price target of $70.00 with a 67% upside from its current share price. As of 9/9/2016, MBLY is up 31% since our pitch.
Top 8 Insights From the 2018 Beauty, Health & Wellness SurveyL.E.K. Consulting
The survey analyzed spending and preferences around nutritional supplements and skincare products. It found that 80% of consumers across generations are highly engaged with both categories, spending on average over $100 per month. Key insights include: (1) Amazon is the most preferred channel for supplements and second most for skincare; (2) consumers spend significantly on the other category as well, showing crossover opportunities; (3) while spending increases with age for supplements, skincare spending is higher for millennials. The survey suggests opportunities around personalization and developing the convenience store channel.
This document analyzes Comcast and recommends buying the stock. It provides an overview of Comcast's business segments including Xfinity residential services, Comcast business services, and NBCUniversal theme parks. It then analyzes Comcast's financials, finding growing revenue, improving profitability, strong cash flow, and earnings expansion. Valuation using DCF, DDM, and multiples implies the stock is undervalued, leading to a $72.63 price target and recommendation to buy.
William Blair 2016 Investment Banking Case CompetitionAlexander Liscum
The document summarizes an investment analysis of Kona Adventures, a travel and entertainment services company. It provides an overview of the travel industry, highlights Kona's business model and financials, and evaluates the company's valuation using DCF, comparable company, and precedent transaction analyses. The summary recommends a sale of Kona to American Express Global Business Travel at a price of $675-750 million based on synergies from the acquisition.
William Blair Investment Banking Case Competition Jake White
Performed comprehensive strategic analysis for a fictitious educational services provider to identify and evaluate potential exit opportunities that would position the company for strong future expansion. Constructed public comparables, precedent transactions, discounted cash flow and leveraged buyout analyses to form a valuation range.
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
This document provides an analysis of Patterson Education Group (PEG) for a case competition. It includes:
- An executive summary that outlines PEG's unique personalized high school model and strong projected growth rates.
- An industry overview of the growing K-12 education sector and education technology industry.
- An analysis of PEG's business model, growth opportunities, and financial projections. Strengths include barriers to entry and technological advantages.
- A valuation of PEG using precedent transactions, comparable company analyses, and a discounted cash flow model, resulting in an estimated valuation range of $170-300 million.
- A discussion of strategic options such as organic growth through new schools and technology expansion, or
William Blair Investment Banking Competition Slide DeckEric Bonelli
This document provides an executive summary for Paesano's Products, which manufactures household, personal care, and hospitality products. It evaluates Paesano's using valuation methods like comparable companies, precedent transactions, and DCF. Key points:
- Paesano's is well-positioned for growth in personal and household products due to pandemic demand.
- Valuation analysis values the company between $600-800 million.
- The summary recommends a sale to a middle market financial sponsor to optimize growth potential.
This document provides an overview and analysis of Skipper's Sporting Goods for potential transaction options. It summarizes the company's position in the sporting goods industry, growth opportunities, and financial projections. Valuation methods, including leveraged buyout, IPO, and precedent transactions, imply an enterprise value range of $1,400-$1,600 million. The recommendation will evaluate strategic acquisition, sponsor buyout, IPO, and maintaining the status quo based on maximizing shareholder value and management goals.
Credit Suisse Fall 2015 Pitch Competitionjontripp17
The document discusses Credit Suisse seeking an anchor investment for its private equity fund. It recommends purchasing ABM Industries as a platform company to build upon through acquisitions. The recommendation analyzes ABM's industry exposure, growth strategy, margin expansion opportunities, management team, and potential exit opportunities for investors.
2015 - Cleveland Research Company Stock Pitch Competition Runner UpMichael T. Loffredo
Cytec Industries is positioned to benefit from growth in the aerospace, automotive, and mining industries. It has substantial contracts with Boeing and Airbus to supply lightweight composite materials for commercial aircraft. Legislation requiring automakers to improve fuel efficiency will increase demand for composites. In mining, decreasing ore grades are driving increased production and use of Cytec's separation chemicals. The analyst recommends Cytec as a buy with a 12-month price target of $70.50, representing 30.51% upside.
Miami University 2016 Cleveland Research Company Stock Pitch Competition WinnerMichael T. Loffredo
Orbital ATK is an aerospace and defense company that provides products and services to government and commercial customers. The presentation recommends Orbital ATK as a buy with a 12-month price target of $110, representing 27.1% upside. Key points include Orbital ATK benefiting from international military spending increases, growth in commercial aircraft deliveries, and opportunities in satellite servicing. Risks include competition from larger players and potential issues executing innovative contracts.
Conducted numerous valuation methodologies and thorough research for Steinkeller Solutions, a highly specialized staffing firm focused on Life Sciences, Technologies, Healthcare IT, and Energy. Assessed Bloomberg data, company financials, and company strategy to make an informed strategic sale recommendation to a sponsor to William Blair bankers.
2023 Cleveland Research Company Intercollegiate Stock Pitch Competition - Fin...Oscar Arenas
This document provides an overview and analysis of Fastenal, an industrial goods distributor. It includes an investment thesis that Fastenal is undervalued given initiatives that could drive operating margin expansion despite analyst pessimism over macro factors. The document outlines Fastenal's business model, strategy of focusing on onsite locations and national accounts, and financial projections showing revenue growth driven by these initiatives. Key risks discussed are a potential manufacturing downturn and loss of suppliers.
Cleveland Research Company Stock Pitch - Acuity BrandsAlexVasapolli
Acuity Brands is pitching Cleveland Research Company stock. They provide an overview of Acuity Brands, the lighting industry, the company's financials, valuation, and investment thesis. Key points include that Acuity Brands has a large commercial construction customer base, pursues technology and efficiency initiatives, and has an ESG strategy, positioning it for growth in the expanding lighting industry. The analysts value Acuity Brands at $235 per share, representing a 28.79% upside from the current price.
Placed 1st out of 20 teams advising board members of a medical technology company on various strategic alternatives and maximizing shareholder value by utilizing discounted cash flow (DCF), precedent transactions, and comparable companies in a pitchbook presentation
2018 Wall Street Week Stock Pitch, First PlaceJoe Braun
The document analyzes MasTec as an investment opportunity, noting that its Communications and Oil & Gas segments are poised for unexpected growth due to accelerating 5G rollouts and continued strength in oil and gas. It sets a 12-month price target of $66 per share, representing 45% upside, based on rapid expansion of AT&T's 5G network and enhanced top and bottom line growth from Communications and Oil & Gas. Valuation analyses find MasTec significantly undervalued relative to peers on forward P/E, EV/EBITDA, and EV/Revenue multiples.
This slide deck was prepared in the spring of 2017 for the CRC Stock Pitch Competition. The team used a DCF model and comparables, among other methods, to value and analyze the company. One of the main arguments for growth in addition to the drivers was the undervalued Euro, and since presentation, has corrected itself and appreciated in value.
The document discusses strategic opportunities for The Clorox Company. It analyzes the company's current positioning, the macroeconomic and industry outlook, and provides an overview of four strategic options - maintaining the status quo, selling to a strategic acquirer, a leveraged buyout, or divesting a segment. The team recommends that Clorox divest the Kingsford brand through an auction process at a valuation of 16.0x EV/EBITDA to raise capital for growth opportunities and better align with consumer trends.
This is a stock pitch for BlackBerry that was presented to faculty and investment professionals for the Cleveland Research Company Stock Pitch Competition in April 2017. My team's pitch was selected as one of the four finalist groups.
Cleveland Research Company Stock Pitch Competition Finalist PresentationNick Meyerson
Finished in the top 5 teams, presented this slideshow to a panel of equity research analysts and associates, and fielded questions about Mobileye's capital structure, its share price's sensitivity to excitement in the media, and projections including a DCF analysis, comparables analysis, and multiple sensitivity analyses.
Was one of five teams to present in front of a panel of equity research analysts and associates. Pitched Mobileye (MBLY) stock as a buy with a 12 month price target of $70.00 with a 67% upside from its current share price. As of 9/9/2016, MBLY is up 31% since our pitch.
Top 8 Insights From the 2018 Beauty, Health & Wellness SurveyL.E.K. Consulting
The survey analyzed spending and preferences around nutritional supplements and skincare products. It found that 80% of consumers across generations are highly engaged with both categories, spending on average over $100 per month. Key insights include: (1) Amazon is the most preferred channel for supplements and second most for skincare; (2) consumers spend significantly on the other category as well, showing crossover opportunities; (3) while spending increases with age for supplements, skincare spending is higher for millennials. The survey suggests opportunities around personalization and developing the convenience store channel.
This document analyzes Comcast and recommends buying the stock. It provides an overview of Comcast's business segments including Xfinity residential services, Comcast business services, and NBCUniversal theme parks. It then analyzes Comcast's financials, finding growing revenue, improving profitability, strong cash flow, and earnings expansion. Valuation using DCF, DDM, and multiples implies the stock is undervalued, leading to a $72.63 price target and recommendation to buy.
William Blair 2016 Investment Banking Case CompetitionAlexander Liscum
The document summarizes an investment analysis of Kona Adventures, a travel and entertainment services company. It provides an overview of the travel industry, highlights Kona's business model and financials, and evaluates the company's valuation using DCF, comparable company, and precedent transaction analyses. The summary recommends a sale of Kona to American Express Global Business Travel at a price of $675-750 million based on synergies from the acquisition.
This document provides an analysis of the online travel industry including Expedia. It begins with an overview of the industry supply chain and structure. A PESTEL and Porter's Five Forces analysis are presented. Expedia's business strategy, financial performance, and competitive position are then analyzed. The document concludes with recommendations to strengthen Expedia's position, including acquiring Choice Hotels to gain bargaining power over suppliers and acquiring Sabre to achieve full vertical integration across the industry supply chain.
This investment recommendation suggests exploring a near-term sale of TripAdvisor (TRIP) to a strategic buyer. It notes that TRIP has experienced slowing growth and margin compression in its core hotels business. A sale could fetch a healthy price for TRIP's owner, Liberty Media, and help strengthen TRIP's long-term positioning by partnering it with a larger company like Google, Amazon, or Expedia. The recommendation analyzes TRIP's business challenges as a standalone company and competitive threats, concluding that a sale is the best path forward.
William Blair Case Competition (Miami University) - 2016Cameron Mogk
This document provides an analysis of Kona Adventures for potential acquisition. It summarizes that:
1) Kona is well-positioned in the travel industry with a focus on digital booking platforms and expansion opportunities.
2) Valuation analysis values Kona between $640-680 million based on comparable company and transaction multiples of 2016 EBITDA of $52.6 million.
3) The analysis recommends a sale to a strategic buyer that can provide synergies from Kona's business segments and customer retention.
Conducted numerous valuation methodologies and thorough research for a company in the Travel Services industry looking to enter into the M&A market. Placed as one of four finalists out of more than 30 teams and presented out pitch to a panel of William Blair partners.
The document provides an analysis of BrickDiscovery, an eDiscovery company, for a potential sale. It summarizes the company's financials, industry drivers, strengths/weaknesses, and valuation. BrickDiscovery is well-positioned in a rapidly growing industry, with 2018E revenue of $153M and EBITDA of $33.45M. A valuation analysis using comparable companies, precedent transactions, and discounted cash flow yields an enterprise value range of $480-550M. Potential strategic and financial buyers are identified that could realize synergies from acquiring BrickDiscovery.
The document discusses corporate travel solutions in Asia provided by Abacus, a leading corporate travel management company. It highlights Abacus' partnerships with Sabre and major airlines to provide global reach and local expertise. Data, technology, and content are emphasized as important for managing costs, compliance and negotiating supplier agreements. Mobile solutions and business intelligence are also areas of focus.
Expedition Exchange is a proposed online currency exchange business. It aims to provide convenient currency exchange services to travelers through an online storefront and delivery by courier. The business will offer competitive exchange rates and buy-back services. Key competitors are large companies like Travelex but they have high overhead costs. The marketing plan targets travelers using websites, affiliations, and search engine optimization. Operations will be run from an apartment with 2 employees and online fulfillment. Risks include over-reliance on partners and foreign exchange volatility. Initial funding of $120,000 is requested with projections of profitability in year 3 and break-even at $568,111 in sales.
Carriage Services is a publicly traded provider of funeral and cemetery services in the United States. It operates 170 funeral homes and 32 cemeteries across 28 states. The company has grown significantly through acquisitions over the past decade, with its stock price increasing from $7.5 to $27 per share. Analysts project continued growth due to demographic trends such as an aging population and increasing cremation rates. Valuation analyses estimate Carriage Services' stock price could reach $30-33 per share based on comparable company multiples and discounted cash flow modeling.
Alibaba is a Chinese e-commerce company that operates online retail, wholesale, and cloud computing platforms. It has a diversified business model and is the largest online trading platform in China. A financial analysis shows Alibaba has a high return on equity, low debt levels, and positive cash flow. Based on a discounted cash flow and multiples valuation, the target price is $76.2, representing an upside of 13.27% from the current price. Due to Alibaba's market leading position, growth opportunities in e-commerce, and solid financials, the recommendation is to buy the stock.
Autobytel Inc operates as a digital automotive marketing services company in the United States. It provides new and used vehicle leads, finance and insurance leads, and dealer analytics and marketing solutions. The company has a market cap of $88 million and trades on the NASDAQ under the ticker ABTL. The analysts recommend buying Autobytel at the current price of $9.75 per share, with a target price of $15.04 based on discounted cash flow and comparable company analyses, implying upside of over 50%. Key risks include management decisions and scale disadvantages versus competitors.
Simon rowles conference presentation september 2010Simon Rowles
Loyalty programs have the data to drive ROI in any channel through a targeted and relevant communications mix. Case studies included : eliminating print from a bank loyalty program reduces the program's performance.
In recent years loyalty programs that reward buyers for sticking with the brand have steadily grown in popularity. Between 2008 and 2012, U.S. loyalty memberships increased by 10 percent per year – reaching over 23 memberships per household. But for all their growth and popularity, do loyalty programs really pay off for the companies that offer them? A recent McKinsey study suggests that on average, they do not – and may in fact destroy value for program owners. For more on loyalty, visit: http://www.mckinseyonmarketingandsales.com/topics/loyalty
This document provides an overview of the modern travel agency industry. It finds that while the number of travel agency locations and employees has decreased since the 1990s due to factors like internet booking, the industry remains an important part of the US economy with $136 billion in annual sales. It also finds that the industry has shifted to different business models over time, including online travel agencies, travel management companies, and independent contractors. Revenue and profits varied between 2012 and 2011 based on agency type.
Ecosystem Week - Canalys - Jay McBain - 6.21.22.pptxJay McBain
We are now firmly in the subscription era. Driven by changing customer behavior and software (powered by the cloud) eating the world, and accelerated by the pandemic, most technology vendors have either committed to or made significant strides to transform their business models.
Subscription and consumption business models are an effective hedge against the current macroeconomic uncertainty. The models look to build a stable base of recurring customers and create predictable revenue that vendors can plan for (and enrich) in the future. Benefits include exponential growth potential, when gaining new subscribers, and attaining greater than 100% retention of current revenue. Successful subscription businesses achieve more efficient and manageable growth.
Without the need to hit the reset button each quarter, vendors and partners can benefit from increased business agility. The new and never-ending customer journey can logically be divided into three steps: getting the customer to the dance (vendor selection), getting them up on the dance floor (initial purchase) and keeping them dancing all night long (retention and enrichment).
Large vendors are committing to subscription and consumption models
In addition to cloud IaaS, PaaS and SaaS companies that built their models as subscription, consumption, product-led growth (PLG) or value-based, we have seen a full commitment by the largest hardware companies in the world. Cisco announced Plus in March 2021, followed shortly after by Dell announcing Apex. Lenovo announced TruScale in September 2021 and the company it acquired its PC and infrastructure businesses from, IBM, spun out its infrastructure services business into Kyndryl and committed to a full multi-cloud, hybrid cloud and AI-focused recurring model. HPE started a pay-as-you-go model in 2006 and continued to develop what became the GreenLake announcement in late 2017, largely direct focused. Having a multi-year head start over its rivals, HPE was able to create a successful channel program (with some notable early bumps in the road) and recruit subscription-friendly partners as a first mover. GreenLake has now delivered three straight quarters of triple-digit growth, even outpacing the growth of supercharged IaaS leaders AWS, Microsoft Azure and Google Cloud.
Suffice it to say, many customers and partners are ready for the subscription era. For those vendors looking to embrace that model, here is how to successfully build channel ecosystems to drive subscription and consumption models:
1. Channel programs must change from recognizing/paying at the point of sale to recognizing/paying at the point of (partner) value
For over 40 years, channel programs and the underlying technology have been designed to drive the sales motion. Enabling resellers, MSPs, distributors, retailers, dealers and agents to more frictionlessly market and sell products at scale was the goal of every channel leader.
The document recommends buying shares of Hertz (HTZ) with a target price of $35, representing 62% upside. Key reasons for the recommendation include Hertz's consistent growth through travel industry expansion and brand growth from its acquisition of Dollar and Thrifty, as well as expected value creation from spinning off its equipment rental business. Financial projections show revenue and profit margin expansion through 2018 driven by market share gains, improved efficiency, and diversification.
The document proposes that Amazon acquire Expedia to gain a foothold in the massive travel industry, arguing that the acquisition would boost Amazon's revenue growth, earnings per share, and internal rate of return while facing no expected regulatory objections. It outlines how the travel market represents a significant opportunity to increase Amazon Prime members' spending and accelerate the flywheel effect of the Prime business model. The document also analyzes Expedia compared to other online travel agencies and identifies areas of the travel booking process that are ripe for disruption.
Essential Elements for Better Corporate Travel in 2019CertifyInc
In a world of increasing personalization, business traveler expectations are being elevated to a point where their needs must be met at every step along the way. This webinar looks at new trends in corporate travel and how finance leaders can build future-proofed corporate travel policies that help manage spend and cuts costs.
Similar to 2016 William Blair Case Competition, Winner (20)
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
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3. Kona presents an attractive opportunity in a peak marketExecutivesummary
Sell-side advisory
Valuation overview
Enterprise Value ($mm)
Potential buyers
3
Kona Adventures is a leading
provider of travel and entertainment
services with a primary focus on
corporate travel
Maintains its market position with a
loyal customer base, strong
management team, and significant
organic and inorganic growth
drivers
Valuation analyses place Kona’s
enterprise value between
$560mm — $600mm
2016E revenue: $206.2mm
2016E EBITDA: $52.6mm
Analysis of past transactions and
the potential for synergies along
with historically strong market
conditions leads to a
recommendation of pursing a near-
term sale to a strategic buyer
Compelling story & financials
Source: Team projections
$500 $550 $600 $650 $700
Leveraged Buyout (10.3x - 11.4x)
DCF - Exit Multiple (12.0x - 12.7x)
DCF - Perpetuity (10.8x - 11.8x)
Comparable Analysis (10.5x - 11.5x)
Precedent Analysis (11.0x - 12.0x)
5. Continuing growth in the broad travel marketIndustrydrivers
Growth in the overall travel
industry will remain steady and
continue to drive the need for
global travel services
Consumer behavior will
continue to change quickly,
and consumer needs will
become increasingly diverse
Supply-side services, (e.g.
hotels and destination
services) will remain
fragmented, and there will
always be the need for an
intermediary
Developing regions will
experience strongest growth in
demand for travel
Kona’s recent expansion into
Asia will allow the company
to capitalize on this growth
Travel services industry revenue growth
4
Projection for number of outbound trips by region
Commentary
$0
$10,000
$20,000
$30,000
$40,000
2009 2010 2011 2012 2013 2014 2015 2016P 2017P
0
100
200
300
400
500
600
North America Europe LATAM MEA APAC
2013 2018E
($ in millions)
(in millions)
Sources: Euromonitor, IBIS world, investor presentations
6. Positioning within the travel industryIndustrydrivers
Players in the global travel
service industry are providers
of high value, real-time
information related to travel
and entertainment itineraries
Companies provide value-add
services to both travel providers
and buyers
Requires strong relationships
with both vendors and
customers
Consumers can now bypass
traditional brick-and-mortar
travel agencies, conduct their
own research, and purchase
directly online
Travelers
5
Commentary
Travel buyers
Value-add services
Providers
Airlines Cruise Car rental Hotels Airlines
Leisure Business
Online travel agencies
Offline travel agencies
Travel management companies
Corporations
Tour operators
Meta-search
Secure efficient B2B payment solutions
Improved efficiency of complex/high volume operations
Expanded addressable customer base and offering
Efficient workflow automation and improved productivity
Reduced operating costs
Source: Investor presentations
7. Travel services have outperformed the broader marketIndustrydrivers
Within the broader travel industry, travel service providers have outperformed significantly
Low-barriers to entry and highly-fragmented conditions, particularly among smaller companies, are
conducive to acquisition activity
Further integration of travel services that are provided by these companies is making it much
easier for consumers and businesses to plan trips while also providing a more dynamic
experience
Indexed travel industry performance (weighted by market capitalization)
6
Commentary
Source: Bloomberg
70
90
110
130
150
170
190
Comparable set Dow travel & tourism index S&P500
9. Strong positioning with room for growthCompanyoverview
Kona Adventures is a leading provider of
travel and entertainment services to
primarily small and medium size
businesses
Includes airfare accommodation, hotel
booking, transportation services, and
entertainment planning
For each transaction that Kona facilitates,
it receives a percentage of the total cost
The company provides “service”
transactions, which are those done by
Kona employees, as well as “digital”
transactions, which are those made by
clients using an app or online means
Strong projected EBITDA growth as the
company moves to expand into new
markets through acquisition and grow an
already large and diverse customer base 22.0%
24.0%
26.0%
28.0%
30.0%
$0
$20
$40
$60
$80
$100
2015A 2016E 2017P 2018P 2019P 2020P 2021P
EBITDA EBITDA Margin
EBITDA growth and margins
45.0%
25.0%
20.0%
10.0%
Small to medium business
(SMB)
Large corporations
Personal (luxury)
Local business
2016E sales by end market
7Sources: Team projections and company materials
($ in millions)
10. Customer and service diversificationCompanyoverview
Recent emphasis on
entertainment planning allows
for diversification of revenue
Complete integration from
air travel to event
attendance
Kona creates value for its
customers by removing the
need for an in-house
administrative travel process
Strong vendor relationships
provide superior access for
customers
The company maintains and
continues to grow its global
presence through its
multinational customer base
25% of 2016E sales are
through European markets
Service / solution offerings breakdown by revenue
8
Customer concentration trends
Commentary
58.5%23.8%
11.3%
6.5%
Aircraft accomodation Hotel booking Transportation services Entertainment planning
54.8%
24.7%
10.0%
10.4%
44.4%
28.4%
8.4%
18.9%
2013 2016 2021
0%
10%
20%
30%
40%
50%
Small to medium
business
Large corporations Personal (luxury) Local business
2011 2016E
Sources: Company materials and team projections
11. Positioning analysisCompanyoverview
9
W
TO
S
Second to market in fast growing
service offerings and geographic
segments
Focused in business travel, which
is growing slower than leisure
travel
Growth of direct booking
that allows for greater
discounts
Low barriers to entry and high
fragmentation lead to a very
competitive landscape
Cyclical nature of travel industry poses
macroeconomic risk
Current portfolio offering and
strong vendor relationships allow
customers broad access
Strong and committed
management team
Diverse geographic
presence
Further expansion into
Asia and other developing
areas
Pursuing acquisitions to expand
offerings, such as education services
Development of new vendor
relationships
Source: Company materials
14. Comparable company analysisValuationanalysis
($ in millions, except for price. Data as of November 3, 2016)
Company name
Ticker &
exchange Price
% of 52 Market
Cap
Enterprise LTM 2016E EBITDA Enterprise Value EBITDA
week high value EBITDA Revenue EBITDA Revenue margin LTM EBITDA 2016E EBITDA 2016E Revenue YOY Growth
Corporate Travel Management CTD AU A$18.12 94.1% $2,346 $2,308 $90 $339 $116 $437 26.5% 25.7x 19.9x 5.3x 29.1%
eDreams Odigeo SL EDR SM € 2.70 87.6% 314 674 105.2 546.0 111.6 543.7 19.3% 6.4x 6.0x 1.2x 13.3%
Lastminute.com NV LMN SW CHF 13.70 87.0% 195 122 13.1 253.1 14.6 260.5 5.2% 9.3x 8.4x 0.5x NA
MakeMyTrip Ltd. MMYT US $27.00 84.6% 1,140 1,125 (76) 374 (53) 224 (20.2%) NA NA 5.0x NA
Sabre Corp. SABR US $23.46 78.2% 6,573 9,764 924 3,248 1,084 3,393 28.5% 10.6x 9.0x 2.9x 29.0%
Smiles SA SMLE3 BZ R$54.75 91.9% 2,148 2,025 171 459 166 468 37.2% 11.9x 12.2x 4.3x 24.3%
Travelport Worldwide Ltd. TVPT US $13.44 88.3% 1,667 3,976 527 2,310 608 2,491 22.8% 7.5x 6.5x 1.6x 11.8%
Travelzoo Inc. TZOO US $9.15 69.0% 127 102 13 131 12 129 9.6% 8.1x 8.3x 0.8x 9.1%
WebJet Ltd. WEB AU A$9.31 76.3% 1,183 1,104 48 198 72 277 24.3% 22.9x 15.4x 4.0x 56.8%
Kona Adventures $52.6 $206.2 25.5% 15.4%
High $6,573 $9,764 $924 $3,248 $1,084 $3,393 37.2% 25.7x 19.9x 5.3x 56.8%
3rd Quartile 2,148 2,308 171 546 166 544 26.5% 14.6x 13.0x 4.3x 29.1%
Median 1,183 1,125 90 374 112 437 22.8% 10.0x 8.7x 2.9x 24.3%
Mean 1,744 2,356 202 873 237 913 17.0% 12.8x 10.7x 2.8x 24.8%
1st Quartile 314 674 13 253 15 260 9.6% 7.9x 7.8x 1.2x 12.6%
Low 127 102 (76) 131 (53) 129 (20.2%) 6.4x 6.0x 0.5x 9.1%
Commentary Derived valuation
Comparable companies are similar in size
and derive revenue from around the world
Much of the North American market has
been consolidated into three large players
Travel technology companies were chosen
to represent Kona’s scalable platform
Kona Adventures' 2016E EBITDA $52.6
Comparable Multiple Range 10.5x 11.5x
Enterprise Value Range $552.1 $604.7
Source: Bloomberg 11
15. ($ in millions, except for price. Data as of November 3, 2016)
Target company Acquirer
Transaction Announcement Transaction
Premium
Transaction Value
type date value Revenue EBITDA EBIT
eLong Inc. China E-Dragon Holdings Ltd Strategic 2/4/2016 $75.8 27.5% 2.0x -- --
Ikyu Corp. Yahoo Japan Corp. Strategic 12/15/2015 774.2 39.1% 13.0x 35.7x 36.9x
Orbitz Worldwide Inc. Expedia Inc. Strategic 2/12/2015 1,595.5 26.5% 1.7x 11.4x 19.5x
Wotif.com Holdings Ltd. Expedia Inc. Strategic 7/7/2014 584.2 32.6% 4.0x 8.5x 9.6x
Astaka Holdings Ltd. Corporate Travel Management Strategic 11/20/2013 49.2 40.5% 2.2x 8.1x 9.1x
Qunar Cayman Islands Ltd. Ocean Management Ltd. Sponsor 6/23/2016 4,067.4 7.9% 6.0x -- --
Kuoni Reisen Holding AG EQT Partners AB Sponsor 2/2/2016 1,351.3 25.0% 0.4x 10.0x 16.6x
Opodo Ltd. AXA SA Sponsor 7/1/2011 613.2 -- 4.1x 11.7x 17.2x
High 13.0x 35.7x 36.9x
3rd Quartile 4.6x 11.6x 18.9x
Median 3.1x 10.7x 16.9x
Mean 4.2x 14.2x 18.1x
1st Quartile 2.0x 8.9x 11.3x
Low 0.4x 8.1x 9.1x
Precedent transaction analysisValuationanalysis
Commentary Derived valuation
Precedent transactions were chosen from
similarly sized companies with comparable
growth rates
North America’s consolidation has taken
place with far larger companies
Recent sponsor activity has been in
emerging markets as middle class develops
Kona Adventures' 2016E EBITDA $52.6
Comparable Multiple Range 11.0x 12.0x
Enterprise Value Range $604.7 $657.3
Source: Bloomberg 12
16. Discounted cash flows analysisValuationanalysis
Derived valuation
($ in millions, except for price. FY ended December 31,)
Estimated Projected
2016E 2017P 2018P 2019P 2020P 2021P
EBITDA 52.6 60.7 66.7 73.4 84.0 91.3
Less: D&A 0.5 0.5 0.6 0.5 0.7 1.0
EBIT 52.1 60.2 66.1 72.9 83.2 90.4
Tax Effect @ 35.0% 18.2 21.1 23.1 25.5 29.1 31.6
NOPAT 33.9 39.1 43.0 47.4 54.1 58.7
Add: D&A 0.5 0.5 0.6 0.5 0.7 1.0
Less: CapEx (0.7) (0.7) (0.7) (0.8) (0.9) (1.0)
Less: Acqusition Costs 0.0 0.0 0.0 0.0 0.0 0.0
Less: Changes in NWC (14.8) (2.3) (2.6) (2.6) (3.0)
Free Cash Flow 24.1 40.5 44.5 51.4 55.7
PV of FCF 20.0 30.5 30.5 32.1 31.6
Assumptions
Revenue growth peaks in
2019 at 10%+
Normalized margins
WACC of 9.9%
Comparable assumptions
Comparable unlevered betas
were used in determining
Kona’s systematic risk
Cost of debt was estimated
using debt comparables
Exit multiple method led to
higher valuation due to double
digit EBITDA growth
Low capital expenditures
result in higher FCF
Commentary
Exit Multiple Method
Exit Multiple 10.0x
Terminal Value 913.4
PV of Terminal Value 517.9
Plus: PV of Future FCF 144.6
Enterprise Value 662.4
Perpetuity Growth Method
Perpetuity Growth Rate 2.75%
Terminal Value 798.3
PV of Terminal Value 452.6
Plus: PV of Future FCF 144.6
Enterprise Value 597.2
Sources: Bloomberg and team projections 13
17. Leveraged buyout analysisValuationanalysis
Leveraged assumptions
Leverage 5.5x EBITDA
consisting of term loan B at
6.5% fixed interest
Consists of a 3.0%
repayment rate per year
Debt comprised 50% of
initial sources
Multiple assumptions
Assumes a 10.5x exit
multiple, which implies a
10.5x entry multiple
Limited capital expenditures
maximize cash flow available
for debt repayment
Asset-light base results in
sizable goodwill creation
CommentaryCapital structure
Exit Multiple
SponsorTarget
IRR
9.5x 10.0x 10.5x 11.0x 11.5x
21.0% 568.2 586.2 604.2 622.3 640.3
23.0% 543.3 559.8 576.4 592.9 609.4
25.0% 520.9 536.1 551.3 566.5 581.7
27.0% 500.7 514.7 528.7 542.7 556.7
29.2% 480.7 493.5 506.3 519.1 531.9
EV sensitivity analysis
Sources: Bloomberg and team projections
($ in millions)
14
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2017P 2018P 2019P 2020P 2021P
Equity Debt
18. Historically long bull market brings downside riskValuationanalysis
Industry revenue is driven by
discretionary spending, which is one of
the first metrics affected during a
recession
Extravagant corporate travel is first to
go when earnings slide
In a modeled recession, revenues drop
~5% in consecutive years as travel
spending is curtailed
Earnings rebound in 2021P
Low asset base allows for high variable
costs and low overhead
Projected downside beginning in 2019P
results in a valuation ~20% below the
current valuation range
Use of debt allows for less downside in
leveraged buyout scenario
Valuation impact
Top-line numbers hit hardest in a 2019P recession
$150
$200
$250
$300
$350
2014A 2015A 2016E 2017P 2018P 2019P 2020P 2021P
Base Downside
$0
$200
$400
$600
$800
Base Downside
DCF - Exit multiple DCF - Perpetuity Leveraged buyout
$168mm of cumulative
revenue lost
Sources: Team projections and company materials
($ in millions)
($ in millions)
15
20. Potential acquisition targetsStrategicoptions
Source: Company websites 16
Kona Adventures
Choose to enter a new,
fast-growing market
segment, that has seen
a flurry of recent deal
activity
Continue to develop
technology platform
as a value proposition
for clients through
acquisition
Studentuniverse.com, Inc. provides
ticket booking, hotel book, and
activity booking services exclusively
for students
BeatnPaths, Inc. is a B2B cloud
platform connecting global
attractions and activities with
agencies, hotels, and airlines to
enhance travel experience
Kona’s proven acquisition history and financial capacity
continue to make it an acquiror of choice
21. Potential acquisition financial impactStrategicoptions
Proposed acquisition takes place in 2017P and has small financial impact
Penetration into new market allows for further acquisitive actions in 2018+
In a levered buyout situation, initial cash outlay is mitigated by additional cash available for
debt repayment in subsequent years
Acquisition can result in a valuation increase that is 2.0x initial investment $12.2 million
EBITDA impact
$0
$20
$40
$60
$80
$100
2013A 2014A 2015A 2016E 2017P 2018P 2019P 2020P 2021P
Organic Incremental Addition
Commentary
Sources: Team projections and company materials
($ in millions) ($ in millions)
17
Cash available for debt repayment
($15)
$0
$15
$30
$45
$60
2017P 2018P 2019P 2020P 2021P
Organic Incremental Source (Use)
22. Strategic buyer universeStrategicoptions
Initial Outlay
Integrated / Operators Technology platformTravel service
Due to Kona’s attractive value proposition in a consolidating market, the company would be
very attractive to a strategic industry player
Asset-light base and tech-enabled platform provide further incentives for acquisition
The company can be expected to draw interest from various players within the travel industry
Sources: Travel Weekly, Bloomberg, CapIQ 18
23. TTS is a global leading
player in the development
of innovative solutions for
the travel and tourism
industry
Targeted strategic buyersStrategicoptions
RationaleMetrics
Size and legacy platform motivates acquisition
Current dependency on brick-and-mortar locations
Stated expansion plans for online booking and
research capabilities
Sources: Company websites, CapIQ
Privately Held
$3.8B in sales in
2015
Privately Held
$2.5B in sales in
2015
LTM sales of
£14.6B
LTM EBITDA of
£1.3B
Private Held
$2.8B in sales in
2015
Description
AAA Travel, a subsidiary of
AAA, offers products and
services directly to
consumers via brick-and-
mortar locations and online
Altour is the largest
independently owned travel
management company in
the U.S., serving luxury and
mid-markets
TUI Group is a leading
tourism company. Based in
Germany, it boasts 1,800
travel agencies, six airlines,
and 300 hotels
Travel and Transport is a
full service travel
management company
headquartered in Omaha,
Nebraska
An American Express Travel Representative
Four acquisitions in the last 12 months
Concentration within corporate travel fits Kona’s
current revenue concentration
Provides international growth platform
Fully-integrated business model creates expansion
opportunity for Kona’s event segment
Market-leading expertise in technology solutions for
the travel and tourism industry
Platform for growth in domestic and international
markets
Concentrates on corporate event management
Looking to enter faster growing luxury tourism
management
Recent Gallup market study confirmed commitment
to advancement in travel industry
Privately Held
19
24. Financial sponsors universeStrategicoptions
Rationale
Invests in media, communications, business, and information services
companies
Partners with management to help build the business and allow synergies
Currently maintains investments in corporate travel management companies
Criteria
Equity value of
~$150mm
N/A but recently
partnered to invest
$900mm in equity
Partners with company management to create long-term value
Invests in the travel, transportation, hospitality, and payment sectors
Current investments; American Express Global Business Travel and Travel
Leaders Group
Multi-stage investment firm exclusively focused on global travel private equity
and venture capital investments
80% of firm investments are as private equity
Supports a robust travel portfolio
Equity value between
$30-250mm
Seeks to find high growth businesses in a variety of industries
Invested in several travel companies including Reed & Mackay, CTC Aviation
Group and Griffin Global
Equity value of
~$120mm
Source: Company websites 20
25. Financial sponsors universeStrategicoptions
RationaleCriteria
Source: Company websites
Equity value of $30-
100mm but is able to
partner for
more equity
Equity value above
$250mm
Equity value between
$100-500mm
N/A
First independent private equity firm focused on Chinese travel and tourism
sector
Invests across all aspects of the travel industry; hotels and resorts, attractions,
online and offline travel agencies and operators, transportation services, and
related business solution providers.
Focused on business services and technology
Current investments in travel industry include Odigeo, which is the leading
online travel agency in Western Europe
Invests in a wide range of industries including the transport & travel sectors
Recently purchased Kuoni group, a leading service provider to the global travel
industry
Financial capacity
Involved in the middle market travel services industry
Three related transactions during the past 30 months
21
26. Selected buyersStrategicoptions
Source: Company websites
Certares focuses exclusively on the travel, transportation, hospitality, and
payment sectors. The management team has significant experience operating
companies within the travel sector, particularly travel management companies.
The firm owns American Express Global Business Travel and Travel
Leaders group. Because of these portfolio companies, we believe that Kona
would be a strong fit to provide new growth opportunities and product
offerings, which would likely allow for a higher price to be paid.
Altour is an established travel management company through its American
Express Travel Representative membership. Additionally, they are one of the
few asset-light travel management companies to be involved in corporate,
leisure, and event management services. With over $2.5B in sales in 2015,
Altour’s size would make an acquisition possible, with the potential for
significant synergies as a result of the transaction.
22
27. Favorable time for saleStrategicoptions
Recent run-up in comparable
equity prices has been due to
investor sentiment, not
financial results
Run almost solely driven by
multiple expansion
Spurred-on by acquisition
rumors
Overall M&A market has
been stagnant
Multiples have leveled out
during the past 24 months
Combination of factors make
it an ideal time for Kona
Adventures to go to market
Middle-market multiples have stagnated…
…But travel service comparables are at historic highs
Commentary
Sources: Team projections and Pitchbook
0.0x
4.0x
8.0x
12.0x
16.0x
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
(EV/EBITDA multiples for transactions with EV>$250mm)
6.0x
10.0x
14.0x
2/10/2016 4/8/2016 6/7/2016 8/4/2016 10/3/2016
(Comparable companies EV/EBITDA multiples)
23
29. Kona presents an attractive opportunity in a peak marketFinalthoughts
Strategic vs. sponsored
Alternative growth opportunities
Valuation overview
Enterprise Value ($mm)
Final recommendation
A sale to a strategic buyer offers
Kona a number of advantages
Larger global platform to
continue to penetrate
international markets and grow
share in existing segments
Stronger synergies from cross-
selling opportunities
Current management will be left
on to spearhead new growth
opportunities
An acquisition of StudentUniverse would
begin a move into the fast-growing,
fragmented student travel industry
BeatnPaths would build on an already solid
technology platform to connect clients
with travel experience opportunities
We recommend that Kona Adventures engages in a sale
to Altour International, Inc.
Strong synergies along with the opportunity for
entirely new growth channels
This sale should take place in the near-term given strong
current market conditions
Implied valuation range of $560 — $600mm
24
$500 $550 $600 $650 $700
Leveraged Buyout (10.3x - 11.4x)
DCF - Exit Multiple (12.0x - 12.7x)
DCF - Perpetuity (10.8x - 11.8x)
Comparable Analysis (10.5x - 11.5x)
Precedent Analysis (11.0x - 12.0x)