The second year MBA team from Rollins College assumed the role of the Investment Bank “MBA Investment Bankers,” consulting on strategic alternatives for a public company with a 550 mUSD market capitalization. The work included a market and industry overview, range of market and discounted cash flow (DCF) valuations, scenario analyses, bidding strategies, and appropriate deal structures. The team additionally developed a term sheet, letter of engagement, and a timeline of the M&A process including post transaction investor relation strategy.
The final recommendation represented an acquisition strategy for a private fashion company with a comprehensive bidding plan to increase value for shareholders, accelerate growth, improve margins, boost public confidence, maintain the legacy of the company’s founders, and benefit from the current economic conditions.
Presented to the "Board of Directors" consisting of 10 professionals from a variety of backgrounds including Investment Banking, Corporate Law, and Wealth Management.
2nd Place Overall
The second year MBA team from Rollins College assumed the role of the Investment Bank “MBA Investment Bankers,” consulting on strategic alternatives for a public company with a 550 mUSD market capitalization. The work included a market and industry overview, range of market and discounted cash flow (DCF) valuations, scenario analyses, bidding strategies, and appropriate deal structures. The team additionally developed a term sheet, letter of engagement, and a timeline of the M&A process including post transaction investor relation strategy.
The final recommendation represented an acquisition strategy for a private fashion company with a comprehensive bidding plan to increase value for shareholders, accelerate growth, improve margins, boost public confidence, maintain the legacy of the company’s founders, and benefit from the current economic conditions.
Presented to the "Board of Directors" consisting of 10 professionals from a variety of backgrounds including Investment Banking, Corporate Law, and Wealth Management.
2nd Place Overall
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis PowerPoint Presentation Slides. Drive your team to excellence.
I do not recommend to anyone relying on the PowerPoint slides for making any decision on whether to invest on Coca-Cola stock. These slides were published for potential employers to gain information about my educational background, not for financial advice.
*Update / Correction: Pepsi was stated as a substitute under the discussion of Porter's Five Forces. This cannot be true because Porter's Five Forces clearly states that a substitute cannot be competitors' similar products. Instead, a substitute is considered an entirely different product groups. So, in this case, Pepsi is not considered a substitute for Coke but Gatorade, Budweiser, coffee and tea.
ETHIOPIA: AN EMERGING MARKET OPPORTUNITYBisher Yousfi
Description of Assignment:
Using the information available in the case, plus your work in the pre-work (economic analysis on Ethiopia) to support your arguments, make a recommendation as to whether any of the companies in the case should enter Ethiopia, and explain why.
This presentation covers the basics of Dividend Discount Model (DDM). Firstly, fundamental formula for valuing a stock using DDM is discussed. After that, 3 cases i.e DDM for zero growth, constant growth, and variable growth stocks, are discussed.
ACG Cup 2nd round case competition final presentationliujingyi
I stood for Univeristy of Texas at Dallas to compete in the ACG Cup case competition in Feb, 2011. The case is about offering LBO advisory to a PE firm as a investment banker. Here is the slides our group used in the final round. Finally, we were placed the second.
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis PowerPoint Presentation Slides. Drive your team to excellence.
I do not recommend to anyone relying on the PowerPoint slides for making any decision on whether to invest on Coca-Cola stock. These slides were published for potential employers to gain information about my educational background, not for financial advice.
*Update / Correction: Pepsi was stated as a substitute under the discussion of Porter's Five Forces. This cannot be true because Porter's Five Forces clearly states that a substitute cannot be competitors' similar products. Instead, a substitute is considered an entirely different product groups. So, in this case, Pepsi is not considered a substitute for Coke but Gatorade, Budweiser, coffee and tea.
ETHIOPIA: AN EMERGING MARKET OPPORTUNITYBisher Yousfi
Description of Assignment:
Using the information available in the case, plus your work in the pre-work (economic analysis on Ethiopia) to support your arguments, make a recommendation as to whether any of the companies in the case should enter Ethiopia, and explain why.
This presentation covers the basics of Dividend Discount Model (DDM). Firstly, fundamental formula for valuing a stock using DDM is discussed. After that, 3 cases i.e DDM for zero growth, constant growth, and variable growth stocks, are discussed.
ACG Cup 2nd round case competition final presentationliujingyi
I stood for Univeristy of Texas at Dallas to compete in the ACG Cup case competition in Feb, 2011. The case is about offering LBO advisory to a PE firm as a investment banker. Here is the slides our group used in the final round. Finally, we were placed the second.
ACG Presentation for the Citizenship by Investment & International Residence ...acgpdx1
A presentation delivered by Aginsky Consulting Group (ACG) at "Citizenship by Investment and International Residence" Conference in London on October 30th-31st, 2013. ACG was a silver sponsor of the event. In this presentation ACG discusses the EB-5 Program, a government sponsored program which allows foreign investors to gain access to U.S. residency in exchange for an investment of $0.5M-$1M, focusing on the direct investment route.
This was the presentation for ACG cup, an M&A Valuation and strategy case competition. I teamed with Jiarong Xia of my MBA !st year class. The presentation was appreciated for its originality and out of the box thinking.
BCG's years of experience distilled into the twelve necessary imperatives for success. For more information, please visit: https://www.bcgperspectives.com/postmerger_integration
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1. MBA Investment Bankers, LLC
Jin Guo, Michael Bagnoli, Thomas Lee, Devisharan Mishra
Presentation to the board of:
Khakis ’R US
2. About Us:
• MBA Investment Bankers LLC is a leading global financial advisory
and investment banking firm. We combine market expertise and
analytical skills to help clients make sound decisions. Our
specialties are in the areas of valuation, M&A and transactions,
restructuring, alternative assets, disputes and taxation
• MBA iB has just over 1,500 employees who serve our clients from
offices in North America, Europe and Asia.
Primary Services
• Valuation
• Investment Banking
• Restructuring
• Dispute Consulting
Core Values
• Our clients’ interests always come first
• Integrity and honesty are at the heart of our business
• Our reputation is a valuable asset and we work hard to keep it
sterling
MBA Investment Bankers, LLC
# 1
M&A Advisor in
transactions
under $1 billion
# 1
M&A Fairness
Opinion Advisor
in US
CEO, Lee Wakeman
3. Current Standing Briefing
Valuation
Decision: Sell or not?
Alternative to Exiting
Refinancing/Recapitalization
Acquisition of “About Boots”
Summary Overview
Recommendation/Conclusion
Presentation Summary
4. Khakis ‘R Us is a publicly traded men’s casual retailer
Strong balance sheet and operating performance
2013 Estimated financials:
• Revenue: $500 mm
• EBITDA: $30 mm
• Cash reserves: $20 mm
• Debt outstanding: $50 mm
Quarterly Dividend of $0.03 per share, 1% dividend yield
Current Standing I
5. Languishing stock price (around $12 per share)
Competitors are: much larger, growing faster, have higher margins
• Khakis’ stock has consistently traded at a lower multiple than
competitor’s
CEO, Millie Pleater, is close to retirement and a successor should be
named soon to ensure the companies continued success
NYC Capital has entered a standing bid of $20 per share for Khakis with
a 67% premium over current market share price
Current Standing II
7. Discounted Cash Flow Analysis
Sales Estimation
Management believes sales could climb in
coming years
Driven by economic recovery and the
introduction of the South East line
Growth Trend
In 2013 sales declined 4.6%
In 2014 sales grow 5% and hold constant at
6% for three years
In 2018 sales growth tapers to 4% Pa
Afterward, in line with assumption of
3.0% perpetual economic growth
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2011 2012 2013 2014 2015 2016 2017 2018
Growth Rate & Sales Projection
Sales Growth Rate
Exhibit 4
8. Discounted Cash Flow Analysis
Profit Margin
Management believes profit margin could
improve in coming years
Mainly driven by increase in gross
margin due to the branding premium
Margin Trend
Gross margin increases from 18.84% in
2012 to over 22.50% in 2016 and holds
constant
In the next five years, the operating
expense stays around 17%
From 2014 to 2018, the CAGR of EBIT is
30.87%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2011 2012 2013 2014 2015 2016 2017 2018
Margin Projection
Gross Margin EBIT Margin Operating Expense Ratio
9. Discounted Cash Flow Analysis
Free Cash Flow
Adjustment from EBIT to FCF
Tax payment (40%)
Depreciation & amortization
Capital expenditure
Stock based compensation
Change in net working capital
(2.54% of Sales)
From 2014 to 2018, the CAGR of free cash
flow is 21.62%
The reinvestment of cash flow stays constant
$(10,000)
$(5,000)
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
2011 2012 2013 2014 2015 2016 2017 2018
Free Cash Flow
Free Cash Flow Less: Capital Expenditures
20. Control Premium in Previous M&A Deals
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Domestic International Last 12 Months
Control Premium Comparison
Median Mean NYC's offer
21. Exit Opportunities
Based on discounted cash flow, we value the company@ $10.50/share
NYC Capital is offering $20. (90.47% premium on $10.50/share, 67%
premium on current trading price -$12/share)
NYC Capital
Pros:
$20 per share is an attractive offer
Best interest of shareholders
Cons:
Khakis corporate culture is independent and hasn’t previously
considered a sale
Consolidation measures could be taken by new controlling entity,
including: Employee cutbacks and production relocation
Deviation from prior company outlook
This is a good premium considering past M&A deals
Involving other bidders can potentially decrease the price of the bid
Suggestion on Including Other Bidders
22. Alternatives to Sell
• Decision: Don’t Sell, Improve
• Fiduciary Duties: the management should inform the shareholders of the offer and
gain majority’s approval
• Future Business Plan – the management should convince the market that growth &
margins will improve to make the multiple comparative with others’
• Plans & Options
• Acquisition of About Boots
• Refinancing and Recapitalization
• Anti-takeover Measures
• Flip-in Poison Pill: adding the poison pill provisions into the charter of the company
can tells NYC Capital or other potential bidders they may face difficulties
• Macaroni Defense: issuing a large number of bonds with the condition they must be
redeemed at a high price if Khakis is taken over
23. Acquisition of About Boots with $50m Debt
About Boots
• A Canadian small chain of
shoes stores
• Estimated 2013 EBITDA $10
million
• Can be acquired for $50 million
Deal Analysis
• Assume the company uses
debt to finance the deal
• EV/EBITDA multiple from 3.6
times to 4.4 times
• Achieve $40 million synergy
value from this transaction
$mm 2014 EBITDA Multiples Equity Value
Khakis 35 4.0x 140
+ About Boots 10 5.0x 50
- Cost -50
+ Tax Shield Value 20
Total 45 3.6x 160
Required Synergy Value 40
NYC's Offer 200
After Acquisition 45 4.4x 200
24. $120mm Debt Refinancing
• Refinancing will change the debt to market equity
ratio from 37.5% to 206%
• Annual interest payment will increase from $4 mm
to $13 mm, assuming an interest rate of 8%.
• If the earnings goes as the projected, interest
coverage ratio will decrease from 5.80 to 1.78
• The refinancing plan is very risky and can
potentially cause financial distress based on the
company’s current financial performance
0
5000
10000
15000
20000
25000
30000
35000
2014 2015 2016 2017 2018
Earnings
Earnings without refinance
Earnings with refinance
25. In current standing, Khakis’ mkt. share price is $12.00
Combining all the valuation methods, we estimate the share price range to be between
$10.50 and $12.16
The current price falls within our projected range
Focus needs to be on increasing the profitability of South East as decrease in the
profitability will hamper the over all performance of Khakis’
Strategic change in management needed
The proposal of UAB to refinance recapitalize with $120mm
Unsustainable with high financial risk
All things considered, the $20.00 offer by NYC Capital is extremely competitive
Even with the acquisition of the Canadian, “About Boots” , it will be difficult to beat
this price
Selling the company is in the best interest of shareholders at this junction
Summary
26. Disclaimer
These materials have been prepared by MBA Investment Bankers LLC (including any affiliates “MBA Investment Bankers”) for the MBA Investment Bankers client or
potential client to whom such materials are directly addressed and delivered (the “Company”) in connection with an actual or potential mandate or engagement and may
not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with MBA Investment Bankers. These materials are based on
information provided by or on behalf of the Company and/or other potential transaction participants, from public sources or otherwise reviewed by MBA Investment
Bankers. MBA Investment Bankers assumes no responsibility for independent investigation or verification of such information and has relied on such information being
complete and accurate in all respects. To the extent such information includes estimates and forecasts of future financial performance (including estimates of potential cost
savings and synergies) prepared by or reviewed with the managements of the Company and/or other potential transaction participants or obtained from public sources,
MBA Investment Bankers has assumed that such estimates and forecasts have been reasonably prepared on bases reflecting the best currently available estimates and
judgments of such managements (or, with respect to estimates and forecasts obtained from public sources, represent reasonable estimates). No representation or warranty,
express or implied, is made as to the accuracy or completeness of such information and nothing contained herein is, or shall be relied upon as, a representation, whether as to
the past, the present or the future. These materials were designed for use by specific persons familiar with the business and affairs of the Company and are being furnished
and should be considered only in connection with other information, oral or written, being provided by MBA Investment Bankers in connection herewith. These materials
are not intended to provide the sole basis for evaluating, and should not be considered a recommendation with respect to, any transaction or other matter. Prior to entering
into any transaction the Company should determine, without reliance on MBA Investment Bankers, the economic risks and merits as well as the legal, tax and accounting
characterizations and consequences of any such transaction. In this regard, by accepting this presentation, the Company acknowledges that (a) MBA Investment Bankers is
not in the business of providing (and the Company is not relying on MBA Investment Bankers for) legal, tax or accounting advice, (b) there may be legal, tax or accounting
risks associated with any transaction, (c) the Company should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) the Company should
apprise senior management as to such legal, tax and accounting advice (and any risks associated with any transaction) and MBA Investment Bankers’ disclaimer as to these
matters. MBA Investment Bankers does not provide tax advice. Accordingly, any statements contained herein as to tax matters were neither written nor intended by MBA
Investment Bankers to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on such taxpayer. Any discussion of tax
matters in these materials may have been written in connection with the “promotion” or “marketing” of any transaction contemplated hereby. Accordingly, any taxpayer
should seek advice based on such taxpayer’s particular circumstances from an independent tax advisor. These materials do not
constitute an offer or solicitation to sell or purchase any securities and are not a commitment by MBA Investment Bankers to provide or arrange any financing for
any transaction or to purchase any security in connection there with MBA Investment Bankers is not acting in any other capacity as a fiduciary to the Company. MBA
Investment Bankers assumes no obligation to update or otherwise revise these materials. These materials have not been prepared with a view toward public disclosure
under state or federal securities laws or otherwise, are intended for the benefit and use of the Company, and may not be reproduced, disseminated, quoted, summarized or
referred to, in whole or in part, without the prior written consent of MBA Investment Bankers. These materials may not reflect information known to other professionals in
other business areas of MBA Investment Bankers. MBA Investment Bankers is a full service securities firm providing investment banking and other services and products to
a wide range of corporations and individuals, domestically and offshore from which conflicting interests or duties may arise. In the ordinary course of these activities, MBA
Investment Bankers may at any time hold long or short positions, and may trade or otherwise effect transactions, for their own account or the accounts of customers, in debt
or equity securities or loans of the Company, potential counterparties, or any other company that may be involved in a transaction. MBA Investment Bankers is required to
obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with it, which information includes the complete name
and address and taxpayer ID number. MBA Investment Bankers may also request corporate formation documents, or other forms of identification, to verify information
provided.
Editor's Notes
Retained to: Present and analyze options
STAY IN CHARACTER! No “WE”
Retained to: Present and analyze options
New colors/differentiate lines on graphs
Split up into 3-5 slides
Move discounting to new slide
COGS estimated to be constant % of sales - line all these Revenues out to explain dcf
New colors/differentiate lines on graphs
Split up into 3-5 slides
Move discounting to new slide
COGS estimated to be constant % of sales - line all these Revenues out to explain dcf
New colors/differentiate lines on graphs
Split up into 3-5 slides
Move discounting to new slide
COGS estimated to be constant % of sales - line all these Revenues out to explain dcf
New colors/differentiate lines on graphs
Split up into 3-5 slides
Move discounting to new slide
COGS estimated to be constant % of sales - line all these Revenues out to explain dcf
New colors/differentiate lines on graphs
Split up into 3-5 slides
Move discounting to new slide
COGS estimated to be constant % of sales - line all these Revenues out to explain dcf
Why the direction from left to right
P/E Ratio has changed dramatically over the years so to avoid distortion we should use EV EBITDA or Revenue
Verbal :- If you want to stick with the sell option with us , we can try to negotiate a better bidding price