MES - Business Strategy

GHS Lighting LLC
Business Strategy
Olivia Breen, Yu-Shan Chien, Kane Elliot,
Gabriela Gomez and Mai Nguyen
Client Report
April 14, 2020
1

Agenda
1. Business Overview
2. Industry Analysis
3. Competitive Positioning
4. Financial Analysis
5. Strategy Recommendations
6. Appendix
7. Reference
2

Business Overview Industry Analysis Competitive Positioning
Strategy
Recommendations
Financial Analysis 4
MISSION, VISION, VALUES
• GHS Lighting provides environmentally friendly, long lasting and
durable lighting solutions that are 100% American made.
• GHS Lighting is designed to meet military and commercial
specifications that incorporates technology to meet the needs of the
future.
CORE COMPETENCIES:
Superior Product Development
Strategic Entrepreneurial insight
Results Oriented

Strategy
Recommendations
COMPANY GOALS
Select the
right
market
strategy
Market
Increase
profit
margin
from 10%
to 30-40%
Profit
Acquire
companies
with
revenues of
$5 million
for vertical
integration
M&A

Strategy
Recommendations
MAJOR TRENDS
Trend/Driver Implication
EXTERNAL
Energy Efficiency
Effective use of energy/energy
consumption
Market Growth Energy Saving and Digitizing
LED Lighting Global trend of energy efficiency
LiFi
Uses light to provide ultra speed
wireless data transfer technology
INTERNAL
LED Technology Optimized cost
LED Market
“By 2025 LED will have 95% of the
lighting market”
Customization Meeting customer specifications

Strategy
Recommendations
5 FORCES ANALYSIS
Bargaining Power of
Suppliers
• US suppliers required
• Bigger suppliers are
from Asia-Pacific
• Suppliers are
investing in R&D
• Up front costs
• Volume discounts
• Warranty
Threat of New Entrants
• Metal halide towers have the largest
market
• Solar-powered lightning towers have
potential.
Threat of Substitutes
• Fixed lightning
• Halogen lightning towers
• Gas powered towers
Rivalry Among Existing
Competitors
• High fixed costs
• Largely diversified, financially
strong competitors
• Economies of scale
• Vertical-integration trend
• Wider distribution network
• Rivalry diversity
Bargaining Power of
Buyers
• Military
• Mining
• Law enforcement
• Construction
• Road Development
• General Rental Needs
Influence of
Complements
• Diesel fuel
• Economic activity
• Mining
• Gas operation
Influence of Public
Entities
• Government policies
(trade agreements,
production, foreign
policy).
• Military
• Law enforcement
• Fire fighter

Strategy
Recommendations
• Metal halide towers are the
most important substitutes.
• LED towers have more
advantages vs metal halide
with apparently no
disadvantages.
• Customers do not recognize
the differences between the
two and have no incentive
to switch to LED.
• Mining pricing differences.
THREAT OF SUBSTITUTES
0
1
2
3
4
Number of
susbitutes
Relative
price
Relative
quality
Incentive to
substitute
Threat of Subsitutes

Strategy
Recommendations
• Highly concentrated market
• Largely diversified and
financially strong
competitors.
• Industry expected to growth
at a CAGR of 5.5% between
2019 and 2024.
• Low differentiation within
the market.
RIVALRY WITHIN THE INDUSTRY
0
1
2
3
4
5
Concentration
Size of
competitors
Industry growth
Fixed cost
Product
differentiation
Diversity of
Competitors
Strategic Stakes
Excess Capacity
Exit Barriers
Rivalry within the industry

Strategy
Recommendations
BARGAINING POWER OF SUPPLIERS
• High supplier concentration
• Mild product differentiation
• Law dependency in the
industry for raw material
and medium for components
• Suppliers are pure players
0
1
2
3
4
Supplier
concentration
Product
differentiation
Supplier input
to buyer
Dependence
on the
industry
Forward
integration
Supplier Power

Strategy
Recommendations
BARGAINING POWER OF BUYERS
• Buyers are concentrated on
military, law enforcement,
construction and mining.
• GHS can offer customization
for each client.
• Efficiency savings
• Most buyers do not have
backward integration, expect
for rental market.
• Low buyers volume.

Strategy
Recommendations
THREATS OF NEW ENTRANTS
0
1
2
3
4
5
Scale
Economies
Product
Differentiation
Switching costs
Capital
requierements
Expertise
requierements
Distribution
channels
Cost advantage
Legal and
regulatory
barries
Incumbents
defense of
market share
Threat of new entrants
• Niche market with limited
market potential
• No disruptive technologies
• Moderate switching costs
• High capital requirements
• Limited distribution channels
• Low regulation on products
• GHS has small market share,
needs to work on growth.

Strategy
Recommendations
ASSESSMENT SUMMARY
• High rivalry within the industry due
to strong financial competitors.
• Low threat of new entrants due to
the characteristics of the market
combined with a high investment
and low profit margin.
• Metal halide towers are the
strongest substitute representing
60% of the market.
• Mild supplier power due to a broad
market with low differentiation.
• Strong buyer power due to
concentration of customers.

Strategy
Recommendations
MARKET CHARACTERISTICS
Market type
•Sales and rental
•Rental market has the largest market share (North America and Asia Pacific).
Light type
•Segmented in metal halide and LED type of light tower
•The metal halide represents largest market share
•LED light tower is expected to be the largest and fastest-growing market
Fuel type
•Diesel, solar/hybrid and direct power.
•Diesel holds the largest share (remote off-grid regions without access to grid
power).
Region
•North America, Europe, Asia Pacific, Middle East & Africa.
•North America accounts for the majority of % MS and this trend is expected
to continue until 2020

Strategy
Recommendations
MARKET SIZE
Sources: Global Market Insight, Markets and Markets, FactMR, and Yahoo finance, 2019 -2020
2.8
4.6
Global Market Size (USD Billion)
2019 2026

Strategy
Recommendations
MARKET SIZE
Sources: Global Market Insight, Markets and Markets, FactMR, Yahoo Finance, and Team Assessment 2019 -2020
Global Market
2.8 Billion (CAGR 4.6%)2
191,000 lamps (Av price $14,700)
Mobile Towers
3% (5730 towers)
LED
40% (2,292 towers)
Metal Halide
60% (3,438 towers)
Terex
Corporation
50.8%
Generac
Holdin
15%
Doosan
10%
Wacker
Neuson
10%
Atlas Copco
10%
GHS
0.87%
Others
3.33%

Strategy
Recommendations
MARKET
• Market Shares of the Company’s Competitors:
○ Highly competitive and concentrated market.
○ Tier 1 players accounting for 50% revenue share
○ Other local players: Will-Burt, Aska Equipment's, LTA, Progress Solar Solutions, Light
Boy, Chicago Pneumatic, and Trime
Source: FactMR, 2019 and Team Assessment
Key Players Revenue Key facts
Generac Holding
(US)
US$ 2 billion
(2018)
• Focused on growth through product innovation and geographic
expansion
• Vertically integrated
• New business model to rent for residential, commercial and
municipal clients (Generac Pro)
Terex Corporation
(US)
US$ 4.4 billion
(2017)
• Increase sell in Asia-Pacific (9%) and LATAM (40%)
• Just one LED gas-powered product.
Doosan Portable Power
(US)
US$ 45.8 million
(2019)
• In 2019, expanded its authorized distributor network with the
addition of a Las Vegas, Nevada, branch for Coastline Equipment.
Wacker Neuson
(Germany)
US$ 1.7 billion
(2017)
• Focus on growing North America market
Atlas Copco
(Sweden)
US$ 10.5 billion
(2017)
• 18 acquisitions completed including a new US distributor
• Continue growth of rentals while decrease in sells
Larson Electronics LLC
(US)
US$ 2.5 million
(2019)
• US Market
• Broad portfolio of product but none similar to GHS
• Rental and sell market

Strategy
Recommendations
COMPETITIVE POSITIONING
Commercial
Grade
Professional
Grade
High
cost
Low
cost

Strategy
Recommendations
COMPETITIVE FACTORS
Demand can be profoundly affected by public policy interventions and
municipality support.
New product developments, improvements in the existing product line,
and mergers and acquisitions are some of the strategies adopted by
the key players to maintain their market share.
The practice of forward-integration is trending in the market with OEM
conductor manufacturers trying to establish themselves as lighting
manufacturers.
The Profit margin for this market is around 7 percent.
Technologies
• Generac Mobile (2019) - diffuse, powerful, even lighting, simplified
controls, and low maintenance requirements for maximized profit
• Larson Electronics (2018) - 150W quadpod-mounted, explosion-proof
LED portable light tower - illuminates an area of up to 9,500 ft2, with
17,500 lm of bright illumination.
Source: FactMR and Modor Intelligence, 2019 and Team Assessment
Generac Mobile
Larson Electronics

Strategy
Recommendations
END MARKETS
2.8 USD Billion
4.6 USD Billion
2019 2024
2019
2019
2019
2019
2024
2024
2024
2024

Strategy
Recommendations
SWOT
Threats
• Highly competitive and concentrated market.
• Largely diversified, financially strong competitors.
• Mergers and acquisitions of key players.
• Practice of vertical-integration is trending in the market.
• New product developments and improvements in the
existing product line.
• New technologies
Opportunities
• LED light tower is expected to be the largest and
fastest-growing market.
• Raising demand for light tower for safe and secure
operations in end-use industries.
• Strong investment in Development for Oil & Gas
Exploration activities.
• Increase demand due to public policy interventions
and municipality support.
• New strict regulatory policies regarding conventional
lighting and energy consumption across U.S.,
European Union, China, and Canada.
• LightSavers program undertaken by The Climate
Group are expected to trigger the substitution of
traditional lighting solutions
Strengths
• Customizable solutions
• Military grade products
• Offer solutions for the mining and heavy
construction industry.
• Most efficient and durable light products.
• Diesel is widely available and more cost-effective
fuel.
• Strong customer service over the product life.
• Only company with solar-power tower
Weaknesses
• Poor brand recognition
• High production cost
• Lack of rental model
• Minimum innovation
• Narrow channel distribution
• Lack of defined marketing strategy
• Slow production process

Strategy
Recommendations
Competitive Advantage:
Military grade customizable products
Build strengths to attack
• Register GHS in google
business.
• Develop a digital strategy with
participation in LinkedIn,
Facebook and Youtube
• Participate in trade shows and
expos
• Advertise in specialized
magazine
• Lease program business model
Defensive strategy
• Strong promotion based on
customizable solutions.
• Customer satisfaction survey to
publish
Build strengths to defend
• Evaluate partnership with
rental distributor
• Evaluate the possibility of a
forward integration
Attacking strategy
• Expand market penetration in
North America
• Build a sales team, begin with 2
sales reps
• Look for business opportunities
with countries supported by US:
Saudi Arabia, Germany, Japan,
South Korea.
• Explore markets in Asia-Pacific
and Latam (rural area projects)
• Take advantage of green trend
with Solar Light Mobile Base
KEY STRATEGIES

Strategy
Recommendations
OVERALL STRATEGY
Improve
Revenues
Enhance
Operations
Increase
Capital
Overall
Strategy
Develop Sales Team
Acquire Production Business
Fundraising

Strategy
Recommendations
MARKET GROWTH STRATEGIES
April
2020
Now
July
2020
Market Expansion,
New Product/
Technology
- Develop a digital
strategy with
participation in LinkedIn,
Facebook, Youtube
- Strong promotion
based on customizable
solutions
October
2020
Market Expansion
- Build a sales team, begin with 3
sales reps: East, West & RoW
- Advertise in specialized medium
- Customer satisfaction survey to
publish
April
2021
Market Expansion,
New Services,
New Product/
Technology
- Participate in trade
shows and expo
- Lease program
business model
- Take advantage of
green trend with Solar
Light Mobile Base.
April
2022
New Services
Partnership with
rental distributor
April
2025
Strategic
Acquisitions
Forward integration

Strategy
Recommendations
MARKETING STRATEGIC ACTIONS
Strategy Actions Cost ROI Timeframe
Status/
Constraints/ Risks
Market
Expansion
• Build a sales team
•2: North America (East & west)
•1: Countries supported by US: Saudi Arabia,
Germany, Japan, South Korea (RoW)
$60K/rep 5x 6 months
High cost. Increase 20%
in sales per rep.
•Develop a digital strategy with participation in
LinkedIn, Facebook and Youtube
$15K 0.5X 3 months
Strong and defined
communication strategy
• Participate in trade shows and expos
•Offshore Technology Conference 2021
•CONEXPO-CON/AGG 2020
$15,000
$15,000
5X 1 year
•Advertise in Magazine $3,500 2.5X 6 months
Requires a 6 months –
1-year campaign
•Customer satisfaction survey and publication $4,500 3.5X 6 months
New Products
&
Technologies
•Strong promotion based on customizable solutions N/A 3 months
Requires actions 1 and 2
to implement•Take advantage of green trend with the Solar Light
Mobile Base
N/A 1 year
New services
& Capabilities
•Lease program business model TBD 1 year
Research credit for
clients
•Partnership with rental distributor TBD 2 years
Evaluate different
partners and their
economic proposals
•Strategic
Acquisitions
•Forward Integration TBD 5 years
High cost and deeper
evaluation
Marketing Budget
US$ 219,500

Strategy
Recommendations
Sales forecast with MKT Investment
2019 2020 2021 2022 2023 2024
Expected Market in units 2,292
2,397 2,508 2,623 2,744 2,870
GHS Without
Changes
Sales $ 101,681
106,358 111,251 116,368 121,721 127,320
Sales UN 20
21 22 23 24 25
Price per unit 18,250
18,250 18,798 19,361 19,942 20,541
MS UN% 0.87% 0.91% 0.95% 1.00% 1.04% 1.09%
With MKT
intervention
Total Marketing expenses
113,000 221,500 238,600 244,108 249,781
Sales UN according to ROI 20
17 34 45 54 57
MS UN% according to ROI 1% 1% 2% 2% 2%
Revenue per mkt strategy
Sales rep 120,000 450,000 674,400 883,740 973,906
Digital
7,500 7,500 7,500 7,500 7,500
Tradeshow
150,000 160,000 175,000 175,000 175,000
Adevertise
8,750 13,000 13,000 13,000 13,000
Survey
15,750 15,750 - - -
TOTAL REVENUE 302,000 646,250 869,900 1,079,240 1,169,406
Sales UN according to sales rep effort
27 44 59 69 79
MS UN% according to sales rep effort 1% 2% 2% 3% 3%
TOTAL REVENUE 491,291 824,880 1,140,176 1,374,860 1,623,592

Strategy
Recommendations
PRODUCTION STRATEGY
• Strategy: MERGERS AND ACQUISITIONS
• Reasons:
– Reduce operating costs
– Increase technology capabilities
à Vertical integration
• Investment Criteria
– $2 million in revenue
– Lower middle market
– Lighting production specialization
– Experienced in serving GHS’s end markets, especially military
• Sourced Companies:
– Larson Electronics
– Generac Holdings

Strategy
Recommendations
Acquisition Synergy Estimation
Acquisition Value
US$ 2 million
Assumptions:
• Acquisition expenses is negligible.
• PV of GHS After Acquisition and Before Acquisition are calculated on a basis of the enterprise values of FY 2020
E and FY 2019 A, respectively.
• Comparable company analysis method: EV/EBIDA multiple is the median multiple of 8.68x from the group of
competitors including Generac Holdings Inc., Atlas Copco AB, Doosan Co Ltd., Wacker Neuson SE, Terex Corp.
• Precedent transaction method: We based our EV/EBITDA multiple of 9.18x from a list completed deals of
construction material industry.
• DCF method: We assumed tax rate of 21%, WACC 15%, and median EV/EBITDA of 4.00x aligned with Terex
Corp.
Base Case
Comparable
Company
Analysis
Precedent
Transaction
Discounted Cash
Flow (DCF)
Average Value
PV of GHS After Acquisition 2,340,246 3,051,724 3,438,463 1,724,556 2,638,747
PV of GHS Before Acquisition (81,986) (129,868) (146,326) (81,986) (110,042)
PV of Larson At Acquisition (1,500,000) (1,500,000) (1,500,000) (1,500,000) (1,500,000)
Premium Paid (Goodwill) (500,000) (500,000) (500,000) (500,000) (500,000)
Expenses - - - - -
Synergy Value 258,260 921,856 1,292,137 (357,430) 528,706

Strategy
Recommendations
Other synergies
Revenue
Growth
Cost
Reduction
Efficiency
Enhancement
Technological
Edge
Operational
Optimization
Market
Expansion
Strategic Objectives

37
THREAT OF SUBSTITUTES
Threat of
Substitutes
Number of
substitutes
The most important substitutes are the fixed towers that represents 93%
of the Light Tower market. However, the most important substitute for the
US are the metal halide mobile towers that represent around 60% of the
market.
Relevant price
Pricing issues are minor and not related to the category of the substitute
but to the brand and the specific characteristics of each product.
Relevant quality
Substitutes have good quality in general. Metal halide towers require 20
mins warm up, are less efficient and have high maintenance costs. LED
towers have almost no disadvantages, GHS product offers higher quality
that the average product.
Incentive of
substitutes
Customers seem to be satisfied with other products, the main motivator
will be the price, payment facilities and efficiency savings.

38
SUBSTITUTES
SUBSTITUTES Key recent trends, facts, changes Assessment
Metal halide towers Largest market in 2018 owed to the increased
demand from the oil & gas, and mining end-users.
Needs to communicate the
increased energy efficiency and
operational characteristics of LEDs
as compared to competitors.
High quality light and high color temperature.
Very useful for high-intensity applications.
Fixed lighting Permanent solution Quick And Easy Set-Up And
Transport
Some portable lighting towers can
generate even five times lighter
and eliminate the so-called “dark
spots”.
Lower fixed costs
Long-term solution
Increased productivity
Solar-powered lighting
towers
More cost-effective GHS has solar-powered solution:
Solar Light Mobile base.Increase in demand to illuminate highly remote
and distant villages.
Hard to provide adequate and reliable 24x7 power
supply and lack of efficient power storage.
Increased demand for solar-power to conserve
energy.
Gas powered towers Diesel is more energy dense than gas and delivers
anywhere from 18% to 30% more energy.
GHS does not sell gas powered
towers.
Gas powered towers are expected to dominate the
market in the coming years.
Gas powered towers are accessible in off-the grid
locations
Gas towers are being used more and more in the
market.

39
RIVALRY WITHIN THE INDUSTRY
Rivalry within
the industry
Concentration
Highly competitive and concentrated market. Tier 1 players accounting
for nearly 40% of revenue share.
Size of competitor Most competitors are largely diversified and financially strong.
Industry Growth
The global light towers market size is projected to reach a market size
of USD 6.1 billion by 2024, growing at a CAGR of 5.5% between 2019
and 2024. This growth is attributed to the increasing investment for
light towers operation in end-use industries such as construction,
mining, oil & gas, and events & sports.
Fixed Costs
The market has high fix cost. The Profit margin for this market is
around 7 percent.
Product
Differentiation
Low differentiation within the market. Most companies offer a good
variety of products but with minimal differences. GHS offers a
customizable solution than no other competitor offers.
Diversity of
Competitors
We are only considering American competitors, because this is a
requirement for main clients like military.
Strategic Stakes
GHS must promote its superior quality and the customizable options to
eat some of the market.
Excess Capacity
GHS has medium excess capacity expansion that will solve an increase
between 2-3% of MS. However, for a bigger expansion and acquisition
must be considered.
Exist Barriers Mild exit barriers linked to high manufacturing investment.

40
COMPETITORS
COMPETITOR Revenue Key recent trends, facts, changes
Generac Holding (US)
US$ 2 billion
(2018)
Belongs to the Zacks Electronics - Power Generation industry (0.55%)
In January 2019, Generac introduced its Generac Mobile and Generac Pro
rental equipment industry solutions.
In 2019, introduced the new MLTS LED light tower
Generac Pro is a new business model to rent for residential, commercial
and municipal clients.
Vertically Integrated
Residential and C&I dealer distribution
Focused on Market Share Growth Through Product Innovation and
Geographic Expansion.
Terex Corporation (US)
US$ 4.4 billion
(2017)
Just one LED gas-powered product.
Increase sell in Asia-Pacific (9%) and LATAM (40%)
Selling market
Doosan Portable Power
(US)
US$ 45.8 million
(2019)
More than 100 years of manufacturing expertise.
In 2019, expanded its authorized distributor network with the addition of
a Las Vegas, Nevada, branch for Coastline Equipment.
Wacker Neuson
(Germany)
US$ 1.7 billion
(2017)
Focus on growing North America market
Selling market
Atlas Copco (Sweden)
US$ 10.5 billion
(2017)
Continue growth of rentals while decrease in sells
18 acquisitions completed including a new US distributor
Larson Electronics LLC
(US)
US$ 2.5 million
(2019)
In 2018 launched a 150W quadpod-mounted, explosion-proof LED
portable light tower.
Their specialties include explosion proof and hazardous location lighting
and power distribution for permanent and portable applications.
Broad portfolio of product but none similar to GHS.
Rental and sell market.

41
PRODUCT COMPARISON
Product
Greenfire
LED Light
Tower
Mobile LED
Light Tower
MLT6SKDS
Mobile LED
Light Tower
MLT4060MV
D
RL-4 LED
Gas
LCV8WKUB-
60Hz-T4F
Light Tower
LTV4K LED
LED light
tower
HiLight V5
Brand GHS Generac
Holding
Generac
Holding
Terex
Corporation
Doosan
Portable
Power
Wacker
Neuson
Atlas Copco
Type of light LED LED LED LED LED LED LED
Fuel Diesel Diesel Diesel Gas Diesel Diesel Diesel
Energy/durati
on
0.4 lts/hr 0.67 lts/hr 2.07lts/hr 1.88 lts/hr 0.76 lts/hr 0.71 lts/hr
Run time 500 hours 203 hours 533 hrs 80 hours 105 hours 132.7 hrs 150 hrs
Refueling 42+ days 18+ days 16 days 7 days 9 days 11 days 18 days
Durability 10+ years 10 years 5 years 10 years 10+ years N/A 7 years
Price $18,250.05 $10,899.00 $21,857.00 $9,200.00 $9,139.61 $10,900
Transportatio
n
Carry 30%
more towers
in a truck
Up to 16
units on a
single truck
Up to 16 units
on a single
truck
Competitive
advantage
Military grade
Environmental
: Saves 6,000
lts fuel
annually
No mercury or
coolant
Digital power
zone, auto
start and stop
and dusk- to-
dawn sensor.
No warm-up
time.
Remote start,
no warm-up
time
Compact
design
25% more
light coverage
50,000 m2
light coverage
Brand offers
more
products
3 LED 6 LED (1
electric)
1 LED 3 LED 2 LED 2 LED (1
electric)
1 Solar 4 Metal Halide 4 Metal halide 3 Metal Halide

42
BARGAINING POWER OF SUPPLIERS
Supplier Power
Supplier
Concentration
Supplier concentration seems to be high, also we must focus only on
American suppliers to meet client needs.
Product Differentia
tion
Low for raw material, medium/high for components.
Suppliers’ Input to
buyer
Few local suppliers with direct contacts within 100 mile radius.
Dependency on the
Industry
Low for raw material, medium/high for components.
Forward integration
Many suppliers are pure player as well and have no desire to acquire
some competitors. However some competitors have forward integration.

43
INDUSTRY SUPPLIERS
SUPPLIERS Key Figures Key recent trends, facts, changes Assessment
Philips
(NLD)
The biggest
lighting
company in the
world.
The products that Philips provide are able to utilize in any places
such as home, commercial development, and public places.
Nowadays, Philips also provide wireless light products, connect
to smart device and different color of light for their customers.
Therefore, the range of the buyers of Philips is big.
What GHS is insisted on is that their
products are all made in the US. Philips,
a Netherlands company, might not be
able to use in GHS even though Philips
is the biggest lighting company in the
world.
GE Lighting
(OH, USA)
“Home” is their
main
customers.
GE lighting is one of the world’s largest LED manufacturers as
well. What they focuses on is “home”, for instance, their product
are able to connect to “Google Home”, also wireless products
and Bluetooth connect as well. With diverse of products, GE
Lighting design different style of products, too.
LED Lights are one of the components
for GHS product. What GE Light is
concentrated on might have difficulty to
provide to GHS. The only thing that
GHS can take away from GE Lighting is
that the headquarter of the company is
from US.
Cree Inc.
(NC, USA)
Outdoor
products are
available
Cree is a lighting company from North Carolina in the Unites
States. They provide indoor and outdoor lights for every
application and environment. some of the product are able to
connect to smart device such as touchscreen, Wi-Fi,
Technologies with wireless, also some of the products can
change colors.
GHS are able to customize buyer’s LED
light, which means that the suppliers
have to have multiple color of LED.
Most of the products that GHS provides
are all outdoor; thus, the function of
the outdoor LED is critical for GHS.
Acuity
(GA, USA)
Catering to
different
industries
Both Acuity and Cree Inc. provide indoor and outdoor lightings
for every application and environment. However, the difference
between Acuity and Cree Inc. is that Acuity provide diverse
lighting products in different industry such as education,
commercial, healthcare, industrial, transportation, roadways,
bridges, and dams.
The customers of GHS are diverse.
Most of the market are focus on places
that have difficulty to build lights which
are removable. Suppliers have to have
products that is durable.

Buyer power
Buyer
concentration
Buyers are concentrated on military, law enforcement, construction,
mining, and other places that need removable lighting towers.
Product
differentiation
GHS lighting towers provide moveable and customizable light. Based on
customers’ need, GHS has a diverse product selection to fit the neeeds
of the market.
Buyer’s profit
margins
GHS provides durable products, which is critical for their customers.
The efficiency of our products mean important savings for the client.
Use of multiple
sources
The range of the lighting tower market is focused on some of the group
such as military, mining, structure and road development. The purpose
of each group is to purchase lighting tower at the same, but the way
they utilize in is different.
Backward
integration
The purpose of a lighting tower is to brighten dark places. People might
think LED light is the most important part of the lighting tower;
however, the duration of the battery and the machine is crucial as
well.
Importance to
buyers
The duration of the lighting tower is long, and the brightness of the
light is able to adjust through weather conditions and sunlight.
Buyer’s volume
The product of GHS can decrease the use of fuel, also all the products
are made in the US.
44
BARGAINING POWER OF BUYERS

45
INDUSTRY BUYERS
BUYERS KEY FIGURES Key recent trends, facts, changes Assessment
Military
Convenient and
effective
Military is an indispensable department. Some of
the places they work in does not have light to
support them. Therefore, having light towers are
essential for them. Furthermore, the products
have to make in the United States.
GHS has the products which
have longer hours, durability,
and sustainability. In addition,
all the products are made in
the US.
Mining
Bright enough
for workers
Mining places are dark usually. People are hard
to mining without light. Thus, lighting tower an
indispensable part for mining industries.
The products that GHS have
are removable. As a result of
that, it is more convenient for
customers.
Law
enforcement
Convenient and
effective
Some of the law enforcements are working
during the night. For instance, police have to
patrol in order to make sure citizens are safe.
Because of that, having lighting device for them
make view clear and safe for police.
Based on customer needs,
GHS can customize products
with convenient and effective.
Construction
Bright enough
for workers
Under dark circumstances, workers are not able
to have clear sight. As a result of that,
construction site must have light around.
The products that GHS have
are removable, durable, and
have configured for 360
degree lighting.
Road
Developmen
t
Convenient and
effective
Street lights are the crucial part of road
development. In order to make people have a
safe and bright view, LED light could me a
choice.
Solar lighting system is one of
the products that GHS have.
Brightness will be adjusted
based on the weather
condition and sunlight.
General
Rental
Needs
Based on
customer needs
Based on customers’ need, GHS are able to
provide rental for clients.
This was a part of business;
however, GHS concentrated
more on selling products
rather than renting.

46
THREATS OF NEW ENTRANTS
Threats of New
Entrants
Scale Economies
As a niche market, the market potential is limited. Economies of scale are
low due to the fix demand and the high cost.
Product
differentiation
No disruptive technologies, about 80% of the product mix is standardized
while 20% is customized.
Switching Costs
Switching cost is moderate in terms of quality and product integration.
Main costumers are satisfied with the product but do not have huge
engagement with the brands
Capital
requirements
Capital requirements are very high, due to the high fix cots of production.
Distributions
Channels
GHS has good relationship with actual customers, but these are very
limited.
Cost advantage GHS has a low-cost advantage die to high fic cost and limited cash.
Legal and
regulatory barriers
Regulatory constraints on employee safety and environment , but low
regulation on products themselves
Defense of market
share
GHS has small market share, needs to work in growing it.

47
INFLUENCE OF COMPLEMENTS/PUBLIC ENTITIES
PUBLIC
ENTITIES
Key figures Key recent trends, facts, changes Assessment
Military
Explore more
chance in this
market
Military has a lot of chances to use light. Both
indoor and outdoor are needed.
Most of the products are fit
based on military needs.
Law enforcement
Explore more
chance in this
market
The chance of law enforcement and military are
similar. Moreover, instead of having a foreign
supplier, the supplier for all the components must
be from the United States.
Stationary light tower and
mini light tower can be
used.
Firefighter
Could be new
market
While firefighters working in the night, they must
have clear view. Therefore, firefighter can be a
part of business for GHS.
GHS are able to provide a
mini watertight light tower
for firefighters.
COMPLEMENTS Key Figures Key recent trends, facts, changes Assessment
Diesel fuel
Essential
materials
Fuel is used in some of the products. As the price
of diesel fuel increases, the price of the diesel
tower will increase as well.
GHS could substitute fuel to
battery for diesel tower.
Economic activity Fluctuate
The economic is fluctuated. Therefore, the price
and the sell of lighting tower could be fluctuate
either.
GHS can have a price range
that is able to bear the
fluctuations of the
economy.
Mining Crucial market
Mines can be mined anytime which means that the
mining industry can be disappear when all
mines are mined. Consequently, there have been
risks to selling in the mining market, which will
increase gradually.
GHS could have substitute
market when the mining
market is decreasing.
Gas operation Fluctuate
The price of gas could be changed every week, so
the price of the lighting tower might be fluctuate.
Battery can be a great
substitute product for tower.

48
SUPPLIERS KEY FIGURES Key recent trends, facts, changes
Philips (NLD)
Products are able to
use anywhere
➔Home, commercial development, and public places
availability
➔Wireless light products
➔3 different level or color of light
➔Connection to smart device
GE Lighting
(OH,USA)
Connected with
smart device
➔The lights are concentrated on home.
➔Cooperate with “Google Home” for the smart light.
➔Bluetooth Connection
➔Wireless light products.
➔Diverse of products and style
Osram (DEU) Sustainability
➔Specializes in opto-semiconductor products as well as
visualization and sensor technology.
➔Offers digital lighting systems that protect the
environment while offering digital lighting systems to help
customers deliver smart results.
Cree Inc. Smart device
➔Headquarters: Durham, North Carolina, USA
➔Provide both indoor and outdoor lights for every
application and environment.
➔Some of the products are connected to smart device such
as touchscreen, Wi-Fi, technologies with wireless, etc.
➔Some of the products are able to change color by
utilizing the color-changing technology.
SUPPLIER INFORMATION

49
SUPPLIER INFORMATION (cont’)
SUPPLIERS KEY FIGURES Key recent trends, facts, changes
Acuity
Catering to
different industries
➔Headquarter: Atlanta, Georgia, USA
➔Provide both indoor and outdoor lights for every
application and environment.
➔Offers diverse lighting products catering to several
industries including education, commercial, healthcare,
industrial, transportation, roadways, bridges and dams,
etc.
➔Focused on developing new technologies, organic
LED’s and lighting with superior technology and a wide
range of power levels.
Epistar
Colorful LED light
and small chips
➔Headquarter: Hsinchu, Taiwan
➔Provide different color of LED light for customers
➔Focus on different area such as flash light for
smartphone, automotive applications, traffic light, etc.
Ledvance
Smart device and
stylish shape
➔Headquarter: Garching bei München, Germany
➔Offers smart light which customers can control via
smartphone or voice.
➔The shape of bulbs are stylish, and the bulbs can
save up to 80% of energy.

50
Sales forecast in Units by Sales Rep
2019 2020 2021 2022 2023 2024
Company
sales 20 21 22 23 24 25
Sales rep 1 3 8 12 15 18
Sales Rep 2 3 8 12 15 18
Sales Rep 3 6 12 15 18
TOTAL SALES
UNITS 27 44 59 69 79
MS UNITS % 1% 2% 2% 3% 3%

51
INCOME STATEMENT FORECAST
FY 20 E FY 21 E FY 22 E FY 23 E FY 24 E
TRADE SALES 491,291 824,880 1,140,176 1,374,860 1,623,592
COST OF SALES
MATERIAL COSTS 196,517 206,342 216,659 227,492 238,867
LABOR COSTS 49,129 51,586 54,165 56,873 59,717
FACTORY OVERHEAD 24,565 25,793 27,082 28,437 29,858
MANUFACTURING COSTS 270,210 283,721 297,907 312,802 328,442
GROSS PROFIT 221,081 541,159 842,269 1,062,057 1,295,150
OPERATING EXPENSES
SELLING 113,000 221,500 238,600 244,108 249,781
GENERAL AND ADMINISTRATIVE 6,500 6,825 6,501 6,826 6,502
TOTAL Operating Expenses 119,500 228,325 245,101 250,934 256,283
OPERATING PROFIT 101,581 312,834 597,168 811,123 1,038,867
OTHER INCOME AND (EXPENSES)
INTEREST EXPENSE - - - - -
TOTAL Other Income/(Expense) - - - - -
INCOME/(LOSS) BEFORE TAXES 101,581 312,834 597,168 811,123 1,038,867
CORP TAXES - - - - -
Delaware State Franchise Tax - - - - -
INCOME/(LOSS) 101,581 312,834 597,168 811,123 1,038,867
INTEREST - - - - -
TAXES - - - - -
DEPRECIATION 250,000 250,000 250,000 250,000 250,000
EBITDA 351,581 562,834 847,168 1,061,123 1,288,867

52
BALANCE SHEET FORECAST
FY 20 E FY 21 E FY 22 E Fy 23 E FY 24 E
Cash - Operating 6,225 51,282 101,867 151,084 255,020
Total Cash 6,225 51,282 101,867 151,084 255,020
A/R - Trade 36,601 61,454 84,943 102,427 120,958
Total A/R 36,601 61,454 84,943 102,427 120,958
Inventory - Raw Materials 221,081 371,196 513,079 618,687 730,617
Inventory - WIP 73,694 123,732 171,026 206,229 243,539
Inventory - Finished Goods 2,948 4,949 6,841 8,249 9,742
Total Inventory 297,723 499,877 690,947 833,165 983,897
Prepaid Insurance - Other 500 500 500 500 500
Prepaid Expense - Other 2,200 2,200 2,200 2,200 2,200
Deposits - Due from Vendors - - - - -
Others Current Assets 2,700 2,700 2,700 2,700 2,700
Total Current Assets 343,249 615,313 880,457 1,089,376 1,362,575
Goodwill 500,000 500,000 500,000 500,000 500,000
Property, Plants, and Equipments 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Accumulated Depreciation - (250,000) (500,000) (750,000) (1,000,000)
Total Long-term Assets 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000
Other Long-term Assets
Subscription Receivable - H Epstein 3,223 3,223 3,223 3,223 3,223
Total Other Assets 3,223 3,223 3,223 3,223 3,223
Total Assets 2,346,472 2,368,536 2,383,680 2,342,599 2,365,798
Accounts Payable - Trade 49,129 82,488 114,018 137,486 162,359
Advanced Payments on Contracts - - - - -
Loan Payable - MES 231,190 208,642 107,922 29,418 -
Loan Payable - Alonso 20 20 20 20 20
Loan Payable - Halevy 20 20 20 20 20
Other Payable 231,230 208,682 107,962 29,458 40
Total Current Liabilities 280,359 291,170 221,980 166,944 162,399
Loan Payable - MES 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000
Total Long-term Liabilities 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000
Total Liabilities 2,280,359 2,091,170 1,821,980 1,566,944 1,362,399
Common Stock - - - - -
Paid in Capital 328,283 328,283 328,283 328,283 328,283
Retained Earnings (262,170) (50,917) 233,417 447,372 675,116
Total Equity 66,113 277,366 561,700 775,655 1,003,399
Total Liabilities & Equity 2,346,472 2,368,536 2,383,680 2,342,599 2,365,798

53
CASH FLOW FORECAST
FY 20 E FY 21 E FY 22 E FY 23 E FY 24 E
Cash Flows from Operating Activities:
Operating Income (EBIT) 101,581 312,834 597,168 811,123 1,038,867
Depreciation - 250,000 250,000 250,000 250,000
Corporate tax paid - - - - -
Loss/(Gain) on disposal of assets - - - - -
(Increase)/Decrease in trade receivables 36601 24852 23490 17484 18531
(Increase)/Decrease in prepaids - - - - -
(Increase)/Decrease in inventory -221621 (202,155) (191,069) (142,218) (150,732)
(Increase)/Decrease in deposits - - - - -
Increase/(Decrease) in taxes payables - - - - -
Increase/(Decrease) in trade payables 37,671 82,488 114,018 137,486 162,359
Increase/(Decrease) in related party payables - - - - -
Increase/(Decrease) in advanced payments - - - - -
Increase/(Decrease) in loan payables 125,006 208,682 107,962 29,458 40
Increase/(Decrease) in accrued expenses (73,240) (75,000) (75,000) (75,000) (75,000)
Net Cash Flow from Operating Activities 5,998 601,702 826,568 1,028,333 1,244,065
Cash Flows from Investing Activities:
Capital expenditure (2,000,000) - - - -
Proceeds from disposal of fixed assets - - - - -
Net Cash Flow from Investing Activities (2,000,000) - - - -
Cash Flows from Financing Activities
Capital Investment 2,000,000 - - - -
Loan received/(paydown) - (556,645) (775,984) (979,116) (1,140,128)
Interest expense - - - - -
Net Cash Flow from Financing Activities 2,000,000 (556,645) (775,984) (979,116) (1,140,128)
Net Change in Cash 5,998 45,057 50,584 49,217 103,936
Beginning Cash Balance 228 6,225 51,282 101,867 151,084
Ending Cash Balance 6,225 51,282 101,867 151,084 255,020

54
Synergy Detailed Assumptions
Comparable Company Analysis
Company Name Ticker EBITDA, LFY Current EV/EBITDA, LFY
Generac Holdings Inc GNRC.K 437,608,000 15.62
Atlas Copco AB ATCOa.ST 2,935,270,241 14.53
Doosan Co Ltd 000150.KS 1,675,992,734 8.68
Wacker Neuson SE WACGn.DE 234,513,374 6.29
Terex Corp TEX.N 384,600,000 4.50
Median 8.68

55
Synergy Detailed Assumptions (cont’)
Precedent Transaction, selected deals are completed within
construction materials.
Announcement
Date
Reported Deal
Value (M USD) Target Name
Target
Nation Acquirer Name Acquirer Nation
Ebitda
Multiple
9/17/2007 4500
Cemex SAB de CV-Certain US
Assets
United States CRH PLC Ireland --
11/21/2017 750
Suwannee American Cement
Co
United States CRH PLC Ireland --
6/12/2014 643.8
Jaypee Cement Corp Ltd-
Cement Unit
India UltraTech Cement Ltd India --
4/16/2010 499.9999 Bharathi Cement Corp Ltd India Vicat SA France --
7/1/2013 455.018 Sacci SpA Italy Sacci SpA Italy --
2/8/2005 389
Cia Cementos Mexicanos SA-
Cement Plants,Distribution
Terminals
United States
Votorantim Participacoes
SA
Brazil --
4/28/2014 261 Rak Ceramics PJSC
United Arab
Emirates
Samena Limestone Co Cayman Islands 9.78
7/6/2011 143.184 VVM NV Belgium CRH Europe Materials Ireland --
2/9/2013 90.9563 Dyckerhoff AG Germany Buzzi Unicem SpA Italy 9.63
3/26/2012 49.999 Iskitimtsement AO Russia
Kholdingovaia Kompaniia
Sibirskii tsement AO
Russia --
3/10/2017 42.31 Calce Barattoni SpA Italy Fassa Srl Italy --
8/21/2019 15.043
H+H OOO-Concrete
Production Business
Russia
LSR Stenovye Materialy
OOO
Russia --
8/14/2012 0.893
OAO
"Tsentrotranszhelezobeton"
Russia
OOO "Torgovyi Dom Ex
More"
Russia --
7/20/2009 0.632 AB Dvarcioniu Keramika Lithuania Misota UAB Lithuania 42.57
Median 9.78

56
Discount Rate Calculations - Assumptions:
Risk-Free Rate (As of 3/10/2020) 1.02%
Equity Risk Premium: 5.94%
Pre-Tax Cost of Debt: –
Cost of Preferred Stock: –
Comparable Companies - Unlevered Beta Calculation:
Levered Debt Preferred Stock Equity Tax Unlevered
Name Ticker Beta Debt % Debt
Preferred
Stock
% Preferred Value % Equity
Tax
Rate
Beta
Generac Holdings Inc GNRC.K 1.02 898,864,000 42.0% - - 1,032,382,000 53.5% 21.0% 0.60
Terex Corp TEX.N 1.61 1,175,700,000 55.4% - - 932,300,000 44.2% 21.0% 0.81
Atlas Copco AB ATCOa.ST 1.48 2,523,926,511 26.5% - - 5,685,857,723 69.3% 21.0% 1.10
Doosan Co Ltd 000150.KS 1.38 - - - - - - 21.0% -
Wacker Neuson SE WACGn.DE 1.30 289,590,788 23.3% - - 1,400,816,589 82.9% 21.0% 1.12
MEDIAN 1.38 898,864,000 26.5% - - 1,032,382,000 53.5% 21.0% 0.81
Ticker
Unlevered
Beta
Debt % Debt
Preferred
Stock
% Preferred Value % Equity Tax Rate
Unlevered
Beta
"Optimal" Capital Structure: 1.38 898,864,000 26.5% - - 1,032,382,000 53.5% 21.0% 2.33
WACC Based on Comparables, "Optimal" Capital Structure: 14.86%
WACC Calculation

57
Free Cash Flow Projections
Free Cash Flow (FCF) Projections Units FY20 E FY21 E FY22 E FY 23 FY 24
Operating Income (EBIT): US$
101,581
312,834 597,168 811,123 1,038,867
(-) Taxes, Excluding Effect of
Interest:
US$
(21,332)
(65,695) (125,405) (170,336) (218,162)
Net Operating Profit After Taxes
(NOPAT):
US$
80,249
247,139 471,763 640,787 820,705
Net Change in Working Capital: US$
62,890
324,143 658,477 922,432 1,200,175
(-) Capital Expenditures: US$
(2,000,000)
(1,750,000) (1,500,000) (1,250,000) (1,000,000)
Unlevered Free Cash Flow: US$ (1,776,612) (931,579) 102,003 954,007 1,841,585
Discount Period: # 1 2 3 4 5
PV of Unlevered FCF: US$ (1,544,880) (704,407) 67,069 545,456 915,593

58
Terminal Value - Multiples Method:
Median EV / EBITDA of Comps: 4x
Baseline Terminal EBITDA Multiple: 4x
Baseline Terminal Value: $ 5,155,468
Implied Terminal FCF Growth Rate: (0)
(+) PV of Terminal Value: 2,563,179
(+) Sum of PV of Free Cash Flows: (721,168)
Implied Enterprise Value: $ 1,842,010
% of Implied EV from Terminal Value: 139%
(+) Cash & Cash-Equivalents: 228
(+) Other Non-Core-Business Assets: -
(-) Total Debt: (117,682)
(-) Other Funding Sources: -
Implied Equity Value: $ 1,724,556
Terminal Value

59
REFERENCES
● Ahmad, T., Kalyanaraman, S., Amjad, F., et al. (2015) Solar vs Diesel: Where to draw the line for cell towers? ACM.
Retrieved from: https://doi.org/10.1145/2737856.2738028
● Fact.Mr (2019) Light Tower Market Forecast, Trend Analysis & Competition Tracking - Global Market Insights 2019 to
2029. Retrieved from: https://www.factmr.com/report/2477/light-towers-market
● Grand View Research (2020) LED Lighting Market Size, Share & Trends Analysis Report By End Use (Residential,
Commercial, Industrial, Others), By Product (Lamps, Luminaires), By Application (Indoor, Outdoor), And Segment
Forecasts, 2020 - 2027. Retrieved from: https://www.grandviewresearch.com/industry-analysis/led-lighting-market
● Generac (2019) Investors Presentation. Retrieved from: http://investors.generac.com/static-files/c3647ef2-e4f3-4a7d-
a69a-7c200970de2e
● Gupta A. & Semwall, A. (2019) Light Tower Market Size By Product (Stationary, Mobile), By Lighting (Metal Halide, LED,
Electric), By Power Source (Diesel, Solar, Direct), By Technology (Manual Lifting, Hydraulic Lifting), By Application
(Construction, Infrastructure Development {Highway Construction, Railway Line Construction, Bridge Construction}, Oil &
Gas, Mining, Military & Defense, Emergency & Disaster Relief), Industry Analysis Report, Regional Outlook, Application
Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026. Global Market Insight. Retrieved from:
https://www.gminsights.com/industry-analysis/light-tower-market
● Markets and Markets. (2019) Light Towers Market by Market Type (Sales and Rental), Light Type (Metal Halide and LED),
Fuel Type (Diesel, Solar/Hybrid and Direct Power), End-User (Oil & Gas, Mining, Construction, and Events & Sports) and
Region - Global Forecast to 2024. Retrieved from: https://www.marketsandmarkets.com/Market-Reports/light-tower-
market-
227191154.html?gclid=Cj0KCQiAkKnyBRDwARIsALtxe7juED1B0udmSB4ut5Cn3DNwt3A1efuvamDRxrqlQQu1voPruGtv_Joa
AqQJEALw_wcB
● Terex Corporaiton (2020) Q4 2019 Conference Call [Presentation]. Retrieved from:
https://s22.q4cdn.com/583752720/files/doc_financials/2019/q4/TEX_Q419Presentation_2.12.20-Final.pdf
● Atlas Copco (2020) Q4 Results [Presentation]. Retrieved from: https://www.atlascopcogroup.com/content/dam/atlas-
copco/corporate/documents/investors/financial-publications/english/20201028-q4-handout-en-fm.pdf
● United Rentals (2019) 2018 Annual Report [Presentation]. Retrieved from:
https://www.unitedrentals.com/sites/default/files/annual-
reports/United%20Rentals%2C%20Inc.%20%202018%20Annual%20Report.pdf

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